The fortune of the United States based electric car maker Tesla has been particularly hood this year. So far this year, the stocks of Tesla have grown by almost 524 per cent.
Tesla notched up another milestone last week after it was accepted to become a part of the S&P 500 index companies. The electric car maker will join the index starting next month.
The electric car maker also crossed another milestone as it surged past the $500 billion in market value mark on Tuesday with its investors rushing in to purchase shares of the company prior to it making a debut in the S&P 500 index. This also extended the already meteoric rise in the stock price of the company so far this year.
On Tuesday, there was an almost 5 per cent rise in the stock price of the California based electric carmaker which propelled its total market capitalization at $519 billion.
That has now made Tesla the seventh most valuable company at Wall Street – right behind Berkshire Hathaway.
The stocks of the company have risen by more than 30 per cent since November 16 when the announcement of the company joining the S&P 500 benchmark was made publicly.
Ahead of its inclusion to the index on December 21, index funds that replicate the S&P 500 will have to buy more than $50 billion worth of Tesla's stock. Moreover, another $8 billion of Tesla shares after it is added could be bought by actively managed mutual funds according to estimates made last week by Goldman Sachs.
Tesla is now the most valuable automotive company in the world by fay even though the total production capacity and actual production of cars by the company is only a small fraction of what is churned out annually by the global auto faints such as Toyota Motor Corp, Volkswagen or General Motors Co.
In recent months, there has also been a surge in the shares of other electric vehicle makers driven by the announcement of boosting electric vehicles being made a top priority during his campaign by President-elect Joe Biden.
There was a 4.9 per cent drop in the stocks of Chinese electric carmaker Nio Inc on Tuesday which brought down the company’s fain in November to 72 per cent.
"One of the core underpinnings of the Biden platform will be around pushing clean energy and zero-emissions vehicles with hopes of accelerating the deployment of electric vehicles and public charging outlets by 2030," Wedbush analyst Daniel Ives wrote in a research note.
(Source:www.moneycontrol.com)
Tesla notched up another milestone last week after it was accepted to become a part of the S&P 500 index companies. The electric car maker will join the index starting next month.
The electric car maker also crossed another milestone as it surged past the $500 billion in market value mark on Tuesday with its investors rushing in to purchase shares of the company prior to it making a debut in the S&P 500 index. This also extended the already meteoric rise in the stock price of the company so far this year.
On Tuesday, there was an almost 5 per cent rise in the stock price of the California based electric carmaker which propelled its total market capitalization at $519 billion.
That has now made Tesla the seventh most valuable company at Wall Street – right behind Berkshire Hathaway.
The stocks of the company have risen by more than 30 per cent since November 16 when the announcement of the company joining the S&P 500 benchmark was made publicly.
Ahead of its inclusion to the index on December 21, index funds that replicate the S&P 500 will have to buy more than $50 billion worth of Tesla's stock. Moreover, another $8 billion of Tesla shares after it is added could be bought by actively managed mutual funds according to estimates made last week by Goldman Sachs.
Tesla is now the most valuable automotive company in the world by fay even though the total production capacity and actual production of cars by the company is only a small fraction of what is churned out annually by the global auto faints such as Toyota Motor Corp, Volkswagen or General Motors Co.
In recent months, there has also been a surge in the shares of other electric vehicle makers driven by the announcement of boosting electric vehicles being made a top priority during his campaign by President-elect Joe Biden.
There was a 4.9 per cent drop in the stocks of Chinese electric carmaker Nio Inc on Tuesday which brought down the company’s fain in November to 72 per cent.
"One of the core underpinnings of the Biden platform will be around pushing clean energy and zero-emissions vehicles with hopes of accelerating the deployment of electric vehicles and public charging outlets by 2030," Wedbush analyst Daniel Ives wrote in a research note.
(Source:www.moneycontrol.com)
