Tesla shares skyrocket after S&P 500 listing announcement

Tesla shares skyrocket after S&P 500 listing announcement

November 17, 2020 0 By autotimesnews

On November 16, the S&P Dow Jones Indices Committee announced its intention to include the famous electric car manufacturer Tesla in the S&P 500 rating – Elon Musk’s company will appear with the publication of a fresh edition on December 21. After this announcement, Tesla shares rose sharply.

After the close of the stock exchange session on the NASDAQ exchange on November 16, the price of Tesla shares was $ 408.09, and on November 17, trading resumed already at $ 460.17 per share. At the time of the news release, Tesla shares were valued at $ 446.28, up 9.36% from the previous session’s close.

In September, S&P Dow Jones Indices refused to include Tesla in the S & P500 rating, although already at that time Elon Musk’s company met all the main criteria, including the main one about maintaining profitability for four quarters in a row. Last month, Tesla reported profit for the fifth quarter in a row – it amounted to a record $ 331 million. And now S&P Dow Jones Indices has decided to include Tesla in the S & P500 index. The compilers of the index did not specify who they plan to exclude from the list. The name of the retiring company will be announced closer to the publication of the new rating.

As noted by CNBC, at the time of the announcement of Tesla’s inclusion in the rating, Elon Musk’s company is already among the ten most expensive American companies S & P500.

In August, Tesla split the stock at a five-to-one ratio, and after trading began with the split on August 31, shares rose to a new all-time high of $ 498.32, pushing Tesla’s market capitalization to $ 464.3 billion. This record is still holding.

By the end of this year, Tesla plans to ship 500 thousand cars (in 2019 the result was 367 500 cars) and for the first time make a profit for the whole year, and next year it may reach a sales volume of one million cars.