Huge news as S&P Dow Jones Indices announced that Tesla would join the S&P 500 index prior to the opening of trading on 21 December 2020, potentially in two tranches making it easier for investment funds to digest depending on investors feedback.
This means that Tesla will be included in S&P 500 and this means investments funds will need to buy Tesla to correctly reflect the index. This will definitely push Tesla price up.
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| Taken from https://www.ft.com/content/5642b34b-ae8d-466d-a906-9acb473b601d |
A great Christmas gift for many? I am currently holding 10 stocks of Tesla and so this is good (stock price going up) and bad news (higher entry price), the stock price of Tesla these few days have hovered around USD406 and it is a good price to buy in, judging by the news of the S&P 500 inclusion, Tesla is expected to increase as seen in the after hours trading where the share price have surged 11.5% to about USD455.
Elon Musk from the past week have been saying that Covid-19 is overblown and effects are not serious, he really is someone who creates news with everything he says. With Tesla added in to the S&P 500, more volatility is expected and things will get interesting.
In the meantime, it has not yet been decided who will be removed for Tesla to be added in.
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