Tesla Inc surpassed $ 500 billion in market value on Tuesday as investors took its shares in the run-up to its S&P 500 debut, extending a meteoric rally that has seen it rise more than 500% this year.
Shares of the California electric car maker rose nearly 5%, putting its market capitalization at $ 519 billion.
(Related Reading: Tesla’s Electric Charge Toward the 500 Million Mark – A Complete Timeline)
Tesla is the seventh most valuable company on Wall Street, just behind Berkshire Hathaway, and its shares have rallied more than 30% since Nov. 16, when it was announced that Tesla would join the benchmark S&P 500 index.
Index funds that track the S&P 500 will have to buy more than $ 50 billion worth of Tesla stock before being included in the index on Dec. 21. Additionally, Goldman Sachs estimated last week that actively managed mutual funds could buy another $ 8 billion from Tesla. share after it is added.
Tesla has become by far the most valuable automaker in the world, even though production is a fraction of Toyota Motor Corp, Volkswagen, or General Motors Co.
Shares of other electric vehicle (EV) manufacturers have also rebounded in recent months, as President-elect Joe Biden made pushing electric vehicles a priority during his campaign.
Chinese electric car maker Nio Inc fell 4.9% on Tuesday, cutting its November gain to 72%.
“One of the fundamental pillars of the Biden platform will be to power clean energy, zero-emission vehicles in hopes of accelerating the deployment of electric vehicles and public charging points by 2030,” Wedbush analyst Daniel Ives wrote in a research note. .
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