Tesla Is Set for the Biggest S&P 500 Debut in History


It’s an exciting week for Tesla as it makes its entry to S&P 500, the sheer size of this company will have a significant impact on the index and here’s how it will look:

Ranking: Top 10
Weighting: 1.52%
2021 P/E ratio: from 22.3 to 22.6
For every $11.11 Tesla moves, the S&P 500 will move 1 point.
Source: S&P Dow Jones Indices
Source: Wolfstreet.com by Wolf Richter, 12 Dec

According to Wolf Richter, founder of Wolfstreet.com, and contributor to Business Insider;
“Tesla’s market cap equals the combined total of Toyota, Volkswagen (VW, Audi, Porsche, etc.), Daimler, GM, BMW, Honda, and Ford.” He continues to note “Based on its market capitalization, at the moment $578 billion, Tesla would be the sixth largest company in the S&P 500 behind Apple, Microsoft, Amazon, Google, and Facebook. And it would weigh over 1% of the S&P 500 index. This massive market cap is turning the otherwise fairly routine event of rejiggering the S&P 500 index into a global spectacle.”

Year to date, Tesla stocks have surged 731% this year and hit record highs, it is now the most widely tracked stock benchmark in the world. Some feel it’s time to take profit, but many others are still buying more shares. A year ago, Tesla was valued at a $70 billion market capitalization, and watching it balloon up to more than $640 billion has rocked investors with thrill, greed and fear. Tesla bulls say the company’s potential is limitless and are buying even more stock as shares charge to new highs. While Motley Fool suspects that this growth in stock is bordering on irrational euphoria, and advises to take some profit but not sell the entire position, even if they have full confidence in Tesla.

How high do you think Tesla will go after entering S&P 500?