Wall Street's most controversial stock may be about to go mainstream.
FILE PHOTO: Tesla electric vehicles for test driving are parked in Hanam, South Korea, July 6, 2020. REUTERS/Kim Hong-Ji
With a market capitalization of about $250 billion, Tesla would be among the most valuable companies ever added to the S&P 500, larger than 95% of the index’s existing components. It would have a major impact on investment funds that track the index.While analysts and investors have recently become more confident of Tesla’s addition, an S&P Dow Jones spokeswoman declined to comment about specific changes to the index.
Ivan Cajic, head of index & ETF research at Virtu Financial estimates index managers would need to own roughly 25 million shares of Tesla stock, currently worth $34 billion. “Even if you don’t like Tesla and you think it’s overvalued, the fact that it is going into the index would mean trillions of dollars would have some kind of position,” said Jim Bianco, head of Bianco Research in Chicago. “As part of their benchmark, portfolio managers would not be able to ignore it.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A great market divergence: Traders break down the split in the S&P 500The five largest stocks on the S&P 500 – Apple, Microsoft, Alphabet, Facebook and Amazon — have rallied double digits, but just one of the 50 smallest S&P 500 is in positive territory.
Read more »
Mystified Tesla bears on Wall Street admit there appears to be nothing that can stop the stock right nowFor subscribers: Mystified Tesla bears on Wall Street admit there appears to be nothing that can stop the stock right now. Check out CNBCPro for a free trial.
Read more »
Tesla China sold 14,954 Model 3 vehicles in June, up 35% on the monthU.S. electric vehicle maker Tesla Inc sold 14,954 Shanghai-made Model 3 vehicles in China in June, up 35% month-on-month, according to the China Passenger Car Association (CPCA).
Read more »
Cars, a cocktail and a celebrity: South Koreans succumb to Tesla feverFrom an eponymous cocktail to eager buyers following the shipping routes of long-awaited cars, Tesla Inc is having a moment in South Korea, particularly among tech-savvy professionals.
Read more »
Elon Musk Drops 'Sexy' Tesla Short Shorts for $69.420.Well... here's Tesla shorts...
Read more »