Tesla shatters records, stocks hit the top ahead of S&P 500 debut

  • Tesla extended its rally ahead of its December debut in the S&P 500, with its market value nearing $500 billion.
Tesla China-made Model 3 vehicles are seen at its factory in Shanghai, China. (File photo) (REUTERS)
Tesla China-made Model 3 vehicles are seen at its factory in Shanghai, China. (File photo)

Tesla Inc. is wrapping up its biggest week in three months as news that Elon Musk’s electric-vehicle maker will enter the S&P 500 Index next month sparked a global buying frenzy throughout the electric vehicle sector.

The rally propelled Tesla shares to a new intraday high of $508.61 on Thursday, and made it the best performing stock this week in the Nasdaq-100 Index. The week’s 21% advance marked the company’s strongest performance since Aug 21, and pushed its market value to $470 billion.

Also check these Vehicles

Find more Cars
Tesla Model S (HT Auto photo)
UPCOMING
BatteryCapacity Icon75 kWh Range Icon396 km
₹70 Lakhs - 1 Cr
View Details
Tesla Model 3 (HT Auto photo)
UPCOMING
BatteryCapacity Icon82kWh Range Icon 555 km
₹ 70 - 90 Lakhs
View Details
Honda Sp 125 (HT Auto photo)
Engine Icon123.94 cc Mileage Icon65.0 kmpl
₹ 86,017 - 90,567
Compare
View Offers
Honda Sp160 (HT Auto photo)
Engine Icon160 cc Mileage Icon65 kmpl
₹ 1.18 - 1.22 Lakhs
Compare
View Offers
Norton 500 (HT Auto photo)
UPCOMING
Engine Icon500.0 cc Mileage Icon25.0 kmpl
₹ 2.50 Lakhs
View Details
Kawasaki Eliminator 500 (HT Auto photo)
Engine Icon451 cc
₹ 5.62 Lakhs
Compare

Analysts at Goldman Sachs Group Inc said on Friday Tesla’s scheduled Dec 21 entry into the benchmark could result in $8 billion of additional demand from actively managed US large-cap mutual funds. That would represent about 1.7% of the company’s current market capitalization.

Tesla’s transformation from a money-losing startup into one of the largest companies in the S&P 500 handsomely rewarded investors, who have also turned their attention to smaller electric-vehicle companies in the hopes that they too emulate the company’s success.

Nio Inc, Lordstown Motors Corp, XPeng Inc and Li Auto Inc are all set to close their best week on record. Tiny peer Ayro Inc’s shares have soared 143% this week alone, while Nikola Corp jumped 26%.

A stream of positive developments is fueling the sector’s momentum, suggesting the electric revolution in the auto and transportation industries may be coming much sooner than expected. In one example, UK Prime Minister Boris Johnson this week called for phasing out gasoline and diesel-fueled cars entirely by 2030.

That pledge follows a similar commitment by US President-elect Joe Biden to create systems promoting clean energy and electric vehicles, suggesting growing coordination among governments globally to develop this industry.

First Published Date: 21 Nov 2020, 08:09 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.