. . World News – US – Tesla has just been added to the S&P 500. Their stock flies.

. . It took months, but Tesla will finally enter the S&P 500 index, cementing its position as one of the world's leading automakers..

CAMEROON MAGAZINE - GM17/11/20203 Mins read45 Views

. .

This copy is for your personal, non-commercial use only. To request presentation ready copies for distribution to colleagues, clients, or clients, visit http: // www. djreprints. Com.

It took months, however

Tesla

Will enter at the end

S&P 500 Index,

Solidify its position as one of the world’s leading automakers. Shares are up nearly $ 45, or 11%, in the post-close trade. The question posed to investors and traders now: Where will the stock go from here?

The S&P 500 Index Committee announced the listing of Tesla (Ticker: TSLA) on Monday evening, and the stock will officially enter the index in December. 21. Tesla rookie investors had been anticipating eventual inclusion, but the timing was in the air. Monday’s announcement is a positive surprise to Tesla bulls.

The positive surprise comes after the September disappointment. Tesla qualified for S&P listing after reporting its profitable second quarter. This gave the company generally accepted accounting principles, short for generally accepted accounting principles, earnings over the previous 12 months plus profits in the most recent reported quarter..

But the S&P 500 Index Committee does not automatically include companies and pass them on to Tesla when announcing its third-quarter rebalancing measures shortly after Tesla announced second-quarter numbers.

That was in early September, when Tesla shares were trading at $ 418. The shares hit $ 330 on Tuesday after the index disappointment, but recovered all losses in five days. Tesla’s share price hit $ 330 on Tuesday – Monday was Labor Day. Tuesday was the first trading day after S&P announced its quarterly plans to rebalance.

Tesla announced another GAAP third-quarter profit, which means it is still eligible for inclusion on the index.. Now Tesla will enter. Investors should assess the type of price movement they can expect in the coming weeks.

Tesla speculators argue that indexing has increased demand for the stock. After all, there are nearly $ 12 trillion in mutual fund assets indexed on S&P 500.. Roughly, $ 100 billion in Tesla shares has to be bought by index funds. This means high demand for a few trading days. But other market experts argue that any price hike triggered by the indices is temporary. After purchasing index funds, trading volumes return to normal.

It’s hard to say exactly what will happen. The stock setting is completely different this time. Tesla shares rose 74% in August after second-quarter numbers and the excitement of the S&P Index. Shares fell 14% in September.

With S&P entering decision on Monday, Tesla’s stock looks stuck. Shares are down nearly 7% over the past month, as of Monday’s closing price. The

Dow Jones Industrial Average

Almost 5% over the same period. On top of that, stocks are around 18% less than $ 502. 49th 52-week high set for September. 1 – around the time of the pointer’s enthusiasm peak.

Traders may expect Tesla stock to retest its 52-week high. There are other data points to look at in order to estimate near-term trading levels. Back in September, the analyst’s highest target price was $ 500 from Jefferies analyst Philip Jane Hoshua.. Now, the top analyst target price is $ 578 from New Street Research analyst Pierre Ferrago.

This is another way to estimate how high Tesla’s trading has been. However, both $ 502 and $ 578 are suggestions and are not related to electric car basics or the automotive industry.. There is no reason any stock will have to reach an analyst’s highest target price, but traders will always look for clues about the near future..

When you enter, Tesla will enter the index as the world’s most valuable automaker. Moreover, it must be the ninth or tenth by value in S&P 500, lagging behind

Walmart

(WMT) or

visa

(Fifth).

Ford Motor

(F) and

General Motors

(GM) are the other two auto manufacturers in the S&P 500.

It took months, but Tesla will finally enter the S&P 500 index, cementing its position as one of the world’s leading automakers.

This copy is for your personal, non-commercial use only. Distribution and use of this material is subject to our Subscriber Agreement and copyright law. For non-personal use or to request multiple copies, please call Dow Jones Reprints at 1-800-843-0008 or visit www. djreprints. Com.