Tesla makes its S&P 500 debut in exactly 4.20 weeks
… and it’s making Wall Street insiders nervous
Tesla is bigger than Visa, but not quite as big as Berkshire
Lau has a point. Tesla is already one of the biggest companies in the world. If Tesla was part of the S&P 500 today, it would be the index’s seventh biggest company, ahead of industry giants Visa, Walmart, Johnson & Johnson, and JPMorgan Chase.
The only companies more valuable would beWarren Buffett’s Berkshire Hathaway, Facebook, Alphabet, Amazon, Microsoft, and Apple.
[Read:Watch Tesla’s meteoric rise — set to techno-remixed Elon Musk tweets]
Considering Tesla’s newly-found girth, any share price reversal could drag market-wide indexes like the S&P 500 down with it.
These concerns are amplified if institutional demanddoessuddenly boost Tesla’s share price on December 21.
After all, stock that goes up can come down just as quickly.
Whatever happens, Tesla’s addition to the S&P 500 gives a degree of validation to investors who’ve already bought in, and offers incentive for the world’s largest funds to jump in — even as the stock trades at new record highs.
Just 4.20 weeks to go…
Story byDavid Canellis
David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.
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