What Tesla in the S&P500 means for their investors?
Tesla is being included in the S&P500. And this will make a lot of their investors and Elon Musk a lot of money.
As Tesla is forming part of the S&P500, certain fund managers will be forced to purchase their shares.
Fund managers following an index will balance their shareholding within their portfolio to reflect Tesla’s current position in the Index and weight within their own funds.
By the way, Tesla is currently the tenth largest company by market cap
There will be a lot of activity on Tesla shares. With prices being driven up as demand rises for the stock.
The question you should ask yourself:
Is the level of share price sustainable? Especially if you consider that without the sale of environmental credits, Tesla would not be making profits…