Tesla Inc blew past $500 billion in market price on Tuesday as investors snapped up its shares within the run-up to its debut within the S&P 500, extending a meteoric rally that has seen it surge over 500% this year.The California electric carmaker’s stock rose nearly 5%, putting its market capitalisation at $519 billion.
Tesla is Wall Street’s seventh most precious company, just behind Berkshire Hathaway , and its shares have rallied over 30% since Nov. 16, when it had been announced Tesla would join the S&P 500 benchmark.
Index funds that replicate the S&P 500 will need to buy quite $50 billion worth of Tesla’s stock before its inclusion to the index on Dec. 21. Additionally, Goldman Sachs estimated last week that actively managed mutual funds could buy another $8 billion of Tesla shares after it's added.
Tesla has become far and away the world’s most precious automaker, despite production that's a fraction of Toyota Motor Corp, Volkswagen or General Motors Co.Shares of other electric vehicle (EV) makers have also rallied in recent months as President-elect Joe Biden made boosting EVs a top priority during his campaign.Chinese electric carmaker Nio Inc fell 4.9% on Tuesday, trimming its gain in November to 72%.
“One of the core underpinnings of the Biden platform are going to be around pushing clean energy and zero-emissions vehicles with hopes of accelerating the deployment of electrical vehicles and public charging outlets by 2030,” Wedbush analyst Daniel Ives wrote during a research note.
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