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  • the world's most valuable car company.

  • Tesla is set to join the S and P 500 in December.

  • It's a major win for chief executive Elon Musk.

  • Following months of speculation, Tesla's shares spiked 14% Monday on the news.

  • With the stock market value over $400 billion Tesla is larger than the vast majority of the company's already in the index.

  • Because of its size, the S and P Dow Jones indices is considering whether to add Tesla's in two stages.

  • Index funds would need to sell about $51 billion worth of shares in companies already in the index in order to make space for the electric car maker.

  • Speculation over whether the company would join the index has swirled since July, after Tesla cleared a major hurdle four consecutive quarters of profits.

  • Tesla's production is only a fraction of rivals such as Toyota, Volkswagen and General Motors, but it has weathered the pandemic and economic crunch better than the auto industry as a whole, sending shares up about 450% in 2020.

  • But skeptics have warned against adding Tesla to the S and P 500.

  • Many investors believe Tesla's stock is in a bubble.

  • There is also looming competition from longer established car companies and questions about corporate governance.

  • Under Musk, the chief executive agreed to pay out $20 million and step down as chairman in 2018 to settle fraud charges.

  • Tesla will join the S and P 500 prior to the opening of trading on December 21st.

the world's most valuable car company.

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B2 tesla index join chief executive speculation musk

Tesla gets green light to join S&P 500

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    林宜悉 posted on 2020/11/17
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