Investing.com investing.com 18 Dec, 2020 19:00 am

Tesla shares rise in busy trade ahead of S&P 500 debut By Reuters

Tesla shares rise in busy trade ahead of S&P 500 debut By Reuters
Tesla shares rise in busy trade ahead of S&P 500 debut

Tesla shares have soared some 700% so far in 2020.Tesla's addition to the S&P 500 forced index-tracking funds to buy about $85 billion worth of Tesla shares by the end of Friday's session so their portfolios correctly reflect the index, according to S&P Dow Jones Indices.Turnover in Tesla shares hit about $30 billion at the mid-day mark of Friday's session, with trading volume topping 44 million, according to Refinitiv data.The inclusion of Tesla's shares may be a double-edged sword for index trackers.

About a fifth of Tesla's shares are closely held by Musk, the chief executive, and other insiders.Elon Musk's Tesla on Monday will become the most valuable company ever admitted to Wall Street's main benchmark, accounting for over 1% of the index.

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