The days of waiting have elapsed. The long-awaited day of Tesla’s S&P 500 listing has finally come.
Back in November, the index announced the EV manufacturer’s inclusion in its court. This is after successive reports of profitability in its quarterly earnings.
Such an announcement is quick to propel its shares to another high. This is despite its already impressive rally this year.
The company is one of the pandemic’s biggest winners, where consumers realized the imperatives of renewable energy.
The shift in market preference led to robust sales, especially in its key districts, including China.
During the same time, the EV maker announced its thrust towards creating its own ecosystem.
Its vision of being a leading third-party supplier of batteries and other components for other firms in the field spurred investors’ confidence in its ability to recreate itself as a catalyst creator.
With the impressive sales, supported by its long-lines of pre-orders for new launches, and robust confidence among traders, the Elon Musk-owned company’s market capitalization skyrocketed.
Currently, the firm’s value plays around $600 billion, now officially considered as a blue-chip stock due to its inclusion in the S&P 500.
It was welcomed with a 1.69% weighting in the index. The firm is the fifth with the most weight next to Apple Inc, Microsoft, Amazon.com, and Facebook.
Consequently, it is considered as the sixth-largest in terms of market cap among its counterparts.
On Friday, both institutional and retail investors of Wall Street’s biggest benchmark rushed to buy its stocks. Sending the per-share value to an all-time high of $695 per share.
So far in the year, the green company managed to hike by approximately 730%. Analysts noted that it has a wider space for growth.
Shares’ Time for Waxing and Waning
Despite the optimistic projections and confidence among investors, Elon Musk’s venture did not manage to sustain the momentum during the first day of trading.
The firm’s shares fell as much as 5.61% during the pre-market trading. Nevertheless, it is quick to bounce back, erasing the losses as it settled at a 5.96% hike in the latest charts.
Currently, its per-share price steadied again at $695 and spectators are anticipating another bullish momentum.
Its anticipated inclusion in the S&P 100, where it will replace the oil and gas firm Occidental Petroleum Corp is expected to provide another support.
Many firms communicated their warm welcome messages on Tesla’s inclusion to the benchmark. They recognize the move as historic for the company.
