It’s all happiness for the Tesla CEO Elon Musk as S&P Global announced on Tuesday November 17 that Tesla would be admitted to the S&P 500 index.
Prior to this declaration, Tesla had been turned down by the index earlier this year, but this time around, the organization has been fortunate to be added to the S&P 500 effective December 21.
The stock shot up, ending the week up almost 20% as the S&P 500 and Dow Jones Industrial Average dropped 0.8% and 0.7%, individually.
As of market close Friday November 20, the business magnate had a net worth of $104.5 billion, up $13.7 billion from the week ago.
This expansion for the electric vehicle stock (Tesla) implies, there might be more gains for the organization.
According to U.S. equity strategy at Goldman Sachs, Mutual funds attached to the S&P 500 will need to consolidate Tesla into their portfolios, which will possibly get $8 billion in new investments.
The S&P 500, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices.
The S&P 500 index is a capitalization-weighted index and the 10 largest companies in the index account for 26% of the market capitalization of the index.
The 10 largest companies in the index, in order of weighting, are Apple Inc., Microsoft, Amazon.com, Facebook, Alphabet Inc. (class A & C), Berkshire Hathaway, Johnson & Johnson, Procter & Gamble and Nvidia, respectively.