Tesla's market value crosses $500 bn as shares surge six-fold this year
Tesla Inc blew past $500 billion in market value on Tuesday as investors snapped up its shares in the run-up to its debut in the S&P 500, extending a meteoric rally that has seen it surge over 500 per cent this year. The California electric carmaker’s stock rose nearly 5 per cent, putting its market capitalization at $519 billion.
Tesla is Wall Street’s seventh most valuable company, just behind Berkshire Hathaway , and its shares have rallied over 30 per cent since Nov. 16, when it was announced Tesla would join the S&P 500 benchmark. Index funds that replicate the S&P 500 will have to buy more than $50 billion worth of Tesla’s stock ahead of its inclusion to the index on Dec. 21. Additionally, Goldman Sachs estimated last week that actively managed mutual funds could buy another $8 billion of Tesla shares after it is added.