Shares of Tesla Inc rose to a record high in a frantic day of trading as investors geared up for the electric carmaker’s much-anticipated entrance into the benchmark S&P 500 index.
The company headed by billionaire Elon Musk on Monday will become the most valuable ever admitted to Wall Street’s main benchmark, accounting for over 1 per cent of the index. The shares have surged some 70 per cent since mid-November, when its debut in the S&P 500 was announced, and have soared 700 per cent so far in 2020.
Tesla’s shares ended up 6 per cent at a record $695. Tesla’s addition to the S&P 500 is forcing index-tracking funds to buy about $85 billion worth of the shares by the end of Friday’s session so that their portfolios reflect the index, according to S&P Dow Jones Indices. — Reuters
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