Tesla stock price hit a lifetime high in anticipation of the leading car company’s addition to the S&P 500 index in the coming week.
What you must know: Electric-car maker, Tesla Inc’s share value rose as high as $695 at the close of its trading session. Tesla will become on Monday, the most valuable company to ever be added to Wall Street’s main benchmark index.
“You’re already seeing significant levels of volume in Tesla stock today, moving a lot higher as a lot of these different ETFs and mutual funds position ahead of the change to get us close to the price as possible for tracking error purposes,” said Lindsey Bell, chief investment strategist at Ally Invest.
Now worth $659 billion, Tesla will increase the concentration of heavyweight companies within the S&P 500.
What this means: Tesla’s market capitalization is far higher than the Gross Domestic Product (GDP) of any African countries; Nigeria – $448.1billion, South Africa – $351.4billion, Egypt – $303.2billion, Algeria – $169.98billion, Morocco – $118.7billion, Ethiopia – $96.12billion, Kenya – $95.5 billion, Angola – $94.6 billion, Ghana – $66.9 billion, Tanzania – $63.2 billion.
- Tesla’s founder, Elon Musk is now worth $158 billion, printing a whopping gain of $131 billion YTD.
- About a fifth of the car company’s shares are owned by its Chief Executive, Elon Musk, and other insiders.
- The S&P 500 is weighted by the number of companies’ stocks available on the stock market.
- The car company’s influence within the benchmark will be slightly reduced, putting it in 8th position, just behind Johnson & Johnson, with an equivalent of about 1% of the S&P 500 index.