It’s official: the electric car manufacturer will join the historical index of the US stock exchange alongside other prestigious brands such as Apple and Microsoft. The electric car manufacturer, founded by Elon Musk, will be included in the set of Standard & Poor’s titles, the most important North American stock index, starting December 21st.
As you can guess from the name, S&P encompasses the top 500 stocks on Wall Street; so what will be the advantages for the company? First of all, a prestige for its image: Tesla, with a value of over 400 billion dollars, is established as the company with the largest capitalization that has entered the Wall Street index in the last 10 years. A giant who makes another goal this year: after sending four NASA astronauts into space with his SpaceX, it enters the world of the “greats” thanks to an important financial actions.
This step also translates into an economic advantage: Tesla’s entry into the index will inevitably lead to a purchase of Tesla shares by investment funds linked to the S&P 500 world. This will translate into approximately 51 billion dollars invested, which will go directly into Tesla’s pockets and, consequently, will increase the personal wealth of its founder.
A risk-free investment?
Actually no. According to some analysts, Tesla shares currently have a price significantly higher than the real market value. With the entry into S&P the value of the shares will grow further but without relying on material factors. This, according to experts, could lead to a speculative bubble with long-term detrimental effects.
Elon Musk, with his Tesla, is however famous for his “extravagant” and unusual decisions that have always led to excellent results: we’ll see if entering the S&P 500 index will be one of them!
Keep following us to stay updated on the news of the automotive sector: with Prodotti EBI you are always in step with the times!