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Tesla is poised to become the largest company to join the S&P 500 in decades, adding complexity to the regular end-of-quarter rebalancing mechanism.
S&P Dow Jones Indices said it will negotiate with investors whether to include Tesla at once or include the indicator in two installments.
S&P Dow Jones Indices also mentioned that as the date for Tesla’s inclusion in the index approaches, it will reveal which constituent stocks will exit the index. The agency is reported to generally remove the smallest company from the index and rank it on the S&P Midcap 400 index.
Currently, the smallest companies in the S&P 500 Index include TechnipFMC Plc (FTI-US), HollyFrontier (HFC-US), Sun Life Financial (SLF-US), Apache (APA-US) and Marathon Oil (MRO-US).
Evercore ISI analyst Chris McNally said in a report that Tesla’s inclusion in the Standard & Poor’s index will trigger heavy buying, accounting for roughly 12% to 13% of the company’s outstanding shares. McNally said S&P Dow Jones Indices may ramp up stocks in batches in the coming days.
CFRA analyst Garrett Nelson believes that Tesla will become the largest company in the history of the S&P 500 Index. The main reason for improving the stock’s rating from “buy” to “buy strong” on October 30.
After Tesla was listed in Standard & Poor’s, Musk’s value rose more than $ 12 billion overnight, making him the third richest person in the world.
Tesla’s share price has skyrocketed this year. After the news that Tesla is about to be listed in the S&P before the end of the year, the value of crazy boss Elon Musk has also risen. The three richest people.
After Tesla announced the stock split in September this year, Musk once surpassed Zuckerberg to become the world’s third-richest man, and then Musk retired to fourth place.
Tesla (TSLA-US) was selected as one of the constituent stocks of the Dow Jones S&P index after Monday. Musk’s wealth and Tesla’s stock price rose simultaneously. More than 12%, Musk made another $ 12 billion in wealth overnight, surpassing Zuckerberg to become the third richest person in the world.
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