Tesla will be added to the S&P 500 index on December 21 in a single step despite concerns that the move could impact the U.S. stock market. Tesla CEO Elon Musk made $100 billion in 2020 alone, making him the world’s second-richest man.
According to a report by CNBC, Tesla will be added to the S&P 500 on December 21 in a single step despite concerns that such a move could disrupt the stock market. Tesla, which is valued at $500 billion, is the largest company to ever be added to the S&P 500 index.
Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices, said that the S&P 500 spoke with members of the investment community prior to its decision to add Tesla in a single step.
“The fact that when S&P originally made the announcement they sought feedback from the investment community on how to handle the addition tells you all you need to know to show how unique a situation this is,” Hickey said.
In a statement, S&P Dow Jones Indices said that the decision to add Tesla to the index in this manner was based on a comprehensive overview of the feedback it received from investors.
“In its decision, S&P DJI considered the wide range of responses it received, as well as, among other factors, the expected liquidity of Tesla and the market’s ability to accommodate significant trading volumes on this date,”
The Associated Press reported on Monday that November marked the S&P 500’s best month since April. The stock market surged in November on news about the successful development of a COVID-19 vaccine.
Elon Musk’s personal fortune increased by a whopping $100 billion in 2020, moving him past Bill Gates to become the world’s second-richest man behind Jeff Bezos.
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