In September’s final index review of the S&P 500, Tesla was shocked when he wasn’t included in the elite club despite successfully meeting the conditions for employment. After that, investors were almost certain that Tesla would be included in the index, and the stock price fell by more than 20%.
On the other hand, the S&P Dow Jones Index was the opposite of yesterday’s announcement, triggering a big rally in Tesla’s stock market, deciding to enter the S&P 500 at Tesla on December 21 this year. The manufacturer’s price has risen more than 12% since the market opened today, with newspapers rising almost 445% this year.
Why is it so good news that Tesla will be included in the S&P 500?
If Tesla’s share price rises further, the passive fund, followed by the S&P 500, followed by funds around the world, reflects the composition of the index, and Tesla’s index membership requires investment in Tesla stock, so Tesla’s share price is on the benchmark. Included to bring new buyers to the Tesla marketplace. Passive funds are estimated to have to invest nearly $40 to $60 billion as Tesla enters the S&P 500.
However, not only professionals, but also small investors may be attracted to Tesla again. Tesla is already loved by small investors, including traders on the Robinhood platform who can reintroduce themselves in the US automaker papers on the popular Reddit site called “wallstreetbets”. We see a lot of posts about Tesla.
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