Tesla to join S&P 500, shares surge

Tesla to join S&P 500, shares surge

S&P Dow Jones Indices said Tesla would be one of the largest companies added to the S&P 500 in the past decade.

Tesla, whose stock closed at $408.09, surged about 14% at 6:20 p.m.in NY, lifting Musk's net worth to $117.5 billion, according to the Bloomberg Billionaires Index.

The S&P 500 index, a basket of America's largest companies, is tracked by passive funds popular with investors. That would make it the tenth most valueable company in the S&P 500.

Tesla stocks surged 13 per cent after trading on Monday (US time) on news that it would be included in the prestigious S&P 500 index, meaning it will likely attract increased interest from professional funds managers and investors.

Full crew of astronauts on SpaceX capsule docks with International Space Station
Walker said it was a little tighter for them than for the two astronauts on the test flight. In Musk's stead, SpaceX's President Gwynne Shotwell attended the launch.

The billionaire tested positive for Covid-19, his rocket company launched four astronauts into space and on Monday his electric carmaker Tesla Inc. was named for inclusion in the S&P 500. In the intervening months, investors have speculated wildly that the electric vehicle pioneer would soon find its way to the index, paving the way for the company's current market valuation of more than $US380 ($519) billion.

A blockbuster quarterly report in July cleared a major hurdle for Tesla's potential inclusion.

In 1999, Yahoo surged 64% in five trading days between the announcement that it would be added to the index on November 30 and its inclusion after the close of trading on December 7.

Elon Musk's personal wealth grew by $15 billion after Tesla got a spot in the S&P 500 index on Monday. The company said it was considering adding Tesla in two stages on December 14 and 21. They are also skeptical of Tesla's corporate governance under Musk, who in 2018 agreed to pay $20 million and step down as chairman to settle fraud charges.

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