Overpriced brand for some, company of the future according to others, Elon Musk’s company is welcomed this Monday in the S&P 500, the club of the best rated companies of the Dow Jones.
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Elon Musk will have to significantly increase the production of his cars if he intends to justify an extraordinary stock market valuation (here in January 2020 in Shanghai, during the launch of the Model 3).
REUTERS
In the automotive galaxy, Tesla is still a satellite in terms of the number of cars produced and sales. As the graph shows, it is more or less at the level of Suzuki or Mitsubishi, far, very far behind the behemoths of the branch. And yet… The company of billionaire Elon Musk is blessed with a higher stock market valuation, on its own, than that of all the other manufacturers combined!
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A huge weight
This is to say if its entry into the S&P 500 index, this Monday morning shortly before the opening of the stock market on Wall Street, constitutes a form of consecration. With a stock market value that rose from $ 570 billion to $ 606 billion in just one week, it will be the largest company to have been added to this index, and could even rank in 6the rank of the most important values. The weight of Tesla is so significant that it is able to rock the very select club by its mere presence, explains John Plassard, investment specialist Mirabaud: “Its weight within S&P 500 will be around 1.5%, ie much more than the company of which it takes the place, Apartment Investment and Management Company, which weighs only 0.2%. “
