Tesla keeps climbing. Up over 60% in two weeks.
As the company’s valuation keeps climbing, speculation is growing that the company will soon join the S&P 500.
2020-07-13 16:54
Tesla's stock climbed to a record high on Monday. One of the reasons for the jump was due to the company lowering the price of Model Y. In addition, Tesla also canceled low-end versions of the crossover vehicle.
Another reason for the great performance of Tesla is that speculation is growing that the company will soon join the S&P 500. Tesla would be among the most valuable companies ever added to the S&P 500. It would be more valuable than 95% of the index’s existing components. Adding Tesla to the S&P 500 would have a big impact on investment funds that track the index. They would be forced to buy tens of billions of dollars worth of Tesla’s stock.
The stock did turn negative during afternoon trading.
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