Tesla starts week with a gain ahead of S&P Index decision
Tesla Inc. rose Monday ahead of a decision by S&P Dow Jones Indices on how it plans to add the electric vehicle company to its benchmark.
Tesla’s $563 billion market cap poses a challenge for addition into the index, prompting the S&P to request feedback from the financial community on whether to include the stock all at once on Dec. 21 or break it in over two days – which would be a first in S&P history.
The company’s impending entry to the group of 500 companies has led to a buying frenzy in its stock and on those of other upstart electric vehicle makers, leading to a more than 40% jump in the company’s share price just since Nov. 16 when the decision was announced. Tesla shares rose as much as 3.81% on Monday, touching a record high of $607.80.
The company also won Chinese approval to start selling its Shanghai-assembled Model Y SUVs in the country, a development that can further lift shares.
Meanwhile, electric vehicle startup Nikola Corp. suffered a setback on Monday, as General Motors Co. scaled back a partnership with the company, scrapping a tentative deal to jointly build an electric pickup truck and replaced it with a non-binding deal to supply hydrogen-fuel technology.