{"id":1297,"date":"2020-11-20T16:37:20","date_gmt":"2020-11-20T16:37:20","guid":{"rendered":"https:\/\/thenextweb.com\/?p=1328973"},"modified":"2020-11-20T16:37:20","modified_gmt":"2020-11-20T16:37:20","slug":"tesla-makes-its-sp-500-debut-in-exactly-4-20-weeks","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=1297","title":{"rendered":"Tesla makes its S&P 500 debut in exactly 4.20 weeks"},"content":{"rendered":"\n

Tesla finally enters the S&P 500 next month, an event Goldman Sachs says could spark<\/a> an $8 billion rally for the electric vehicle wunderstock.<\/p>\n

News of its S&P 500 nod has already<\/em> pushed Tesla\u2019s share price up 22% to eclipse the index\u2019s top performers CARR and ETSY by more than 200%.<\/p>\n

Indeed, if Tesla was in the S&P 500 today, it would be the index\u2019s best performing stock this year \u2014 by far.<\/p>\n

<\/figure>\n

But in around 31 days, a reported $11 trillion in mutual funds<\/a> and other investments tracking the S&P are expected to buy Tesla stock, and some Wall Street insiders are nervous of what might happen.<\/p>\n

\u201cThey\u2019re almost turning the S&P 500 into more of a momentum index,\u201d Apriem Advisors\u2019 Benjamin Lau, whose firm manages $850 million worth of assets, told Bloomberg<\/a>.<\/p>\n

\u201cI\u2019m more worried about how it affects our index funds and passive holdings than anything else.\u201d<\/p>\n

(If the visualization below doesn\u2019t show, try reloading this page in your browser\u2019s \u201cDesktop Mode.\u201d)<\/em><\/p>\n

Tesla is bigger than Visa, but not quite as big as Berkshire<\/h2>\n

Lau has a point. Tesla is already one of the biggest companies in the world. If Tesla was part of the S&P 500 today, it would be the index\u2019s seventh biggest company, ahead of industry giants Visa, Walmart, Johnson & Johnson, and JPMorgan Chase.<\/p>\n

The only companies more valuable would be Warren Buffett\u2019s Berkshire Hathaway<\/a>, Facebook, Alphabet, Amazon, Microsoft, and Apple.<\/p>\n

[Read: Watch Tesla\u2019s meteoric rise \u2014 set to techno-remixed Elon Musk tweets<\/a>]<\/em><\/p>\n

Considering Tesla\u2019s newly-found girth, any share price reversal could drag market-wide indexes like the S&P 500 down with it.<\/p>\n

\"Tesla,<\/figure>\n

These concerns are amplified if institutional demand does<\/em> suddenly boost Tesla\u2019s share price on December 21.<\/p>\n

After all, stock that goes up can come down just as quickly.<\/p>\n

Whatever happens, Tesla\u2019s addition to the S&P 500 gives a degree of validation to investors who\u2019ve already bought in, and offers incentive for the world\u2019s largest funds to jump in \u2014 even as the stock trades at new record highs.<\/p>\n

<\/p>\n

Just 4.20 weeks to go\u2026<\/p>\n

Published November 20, 2020 \u2014 16:37 UTC <\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Tesla finally enters the S&P 500 next month, an event Goldman Sachs says could spark an $8 billion rally for the electric vehicle wunderstock. News of its S&P 500 nod has already pushed Tesla\u2019s…<\/p>\n","protected":false},"author":1,"featured_media":1298,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/1297"}],"collection":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1297"}],"version-history":[{"count":0,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/1297\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/media\/1298"}],"wp:attachment":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}