After a rocket-fuelled 2020 which saw Tesla stock soar 700% investors are banking huge profits in the world’s most valuable car company after it was added to the S&P 500 index at the start of this week.
Since being added to the US index on Monday (21 December 2020) more than 108 million shares have changed hands. On Friday 18 December, more than 220 million Tesla shares changed hands as index funds tracking the S&P 500 built up their positions in the stock.
Friday saw the stock hit all-time highs of $695 but the price has fallen about 8% this week to $640.34.
BIGGEST EVER S&P ENTRANT
Tesla was by far the largest new entry ever to the S&P 500, causing a trading avalanche in the run-up to it joining the index.
As the following Statista chart shows, Tesla joined the market cap weighted index as an instant heavyweight. Its current market cap of $616 billion places the electric cars and batteries maker among the top 10 companies included in the S&P 500.
With the first five spots all taken by major tech companies, Tesla currently slots in behind Facebook in sixth position.
