Elon Musk’s company breaks records a few weeks after joining the S & P500
Tesla continues to break stock market records. On Tuesday, the Californian electric vehicle maker settled at record highs after surpassing $ 500 billion in market capitalization.
The announcement, last week, of its imminent incorporation to the S&P 500 is triggering the price of the multinational Elon Musk. In the last seven days, the price of its shares has revalued 33%, while in the accumulated of the year the increase rises above 550%.
Tesla enters the S&P 500 on 21-D
The company’s debut in one of the main world indices will take place on December 21.
An entry sheltered by passive funds.
- According to a report published by eToro, on its entry to the S&P 500, Tesla will be surrounded by index funds, which will have to sell more than 51,000 million dollars to buy Tesla securities
- “They have to buy the proper weighting of stocks to properly track the index,” say eToro analysts.
The breaking of Tesla records coincides with the good time that electric vehicle manufacturers are living. Companies such as the Chinese Nio or XPeng or the American Nikola have also reached record highs on the stock market in recent weeks given the prospects for a change in trend in the motor industry.
Musk, among the richest
All in all, the revaluation of Tesla is skyrocketing the wealth of its founder and main shareholder, Elon Musk. In the last year, his fortune grew by more than 100 billion dollars, which is why he already ranks number two in the Bloomberg billionaires ranking, only behind the owner of Amazon, Jeff Bezos.
The bulk of the assets of the South African businessman is Tesla, of which he has 17.99% of the company’s outstanding shares, that is, more than 170 million titles according to data from Bloomberg.
Along with 20% of the shareholding package of his company SpaceX, focused on the aerospace sector, Musk climbs in 2020 to 33 positions in the ranking of the richest people in the world.