- Tesla announced S&P 500 debut on Friday.
- The company made its debut on Monday, December 21.
- The Shares for the Company fell 6.5%.
The S&P 500 is a stock market index evaluating the performance of 500 major companies listed in the United States on stock exchanges.
After rising to a record high on Friday in a frantic day of trading, Tesla Inc made its much-awaited debut in the benchmark S&P 500 index on Monday, December 21.
Tesla Falls at Stock Market
The S&P 500 debut of Tesla does not look so fine. On Monday, the shares shed 6.5 percent as investors who purchased the stock encashed in anticipation of its entry into the benchmark.
Following a study that Apple too is going ahead with its production of electric vehicles. The stock dropped to its session low.
In the index, the electric car manufacturer has a 1.69 percent weighting, the fifth highest. When counting Alphabet’s share classes together, it is the sixth-largest business in the large-cap benchmark.
Image Courtesy of CNBC
After a more virulent form of the coronavirus in Britain ignited concerns of new disturbances, Wall Street was down broadly.
Still a Great Year for Tesla!
Tesla is an electric car producer owned by billionaire Elon Musk, the most valuable brand ever to be listed in the key benchmark of Wall Street. It also accounted for a weight of 1.69 percent in the index before trading on Monday.
Since mid-November, when Tesla’s debut in the S&P 500 was revealed, the shares have risen by some 70 percent and have soared by around 700 percent so far in 2020.
According to S&P Dow Jones Indices analyst Howard Silverblatt, Tesla’s addition to the S&P 500 led index-tracking funds to buy $90 billion of stock by the end of Friday, so their portfolios mirrored the index.
The change was successful prior to the opening on Monday. Also, Tesla is replacing Apartment Investment and Management Co.
Tesla’s rally in California has put its market cap at approximately $630 billion. The sixth most valuable U.S. publicly traded firm, although many investors see it as wildly overvalued.
Some investors have speculated that Tesla’s stock could sell-off after its addition to the S&P 500 as demand subsides.
