Surging Tesla Stocks have increased the company's market cap to more than $ 515 billion, a five-fold increase since the beginning of the year.
The traditionally volatile share continued to fluctuate. Since Tesla stock hit an annual low in March, it has been on an upward trend that accelerated in August. Tesla's share price, which rose 4.6% to $ 545.62 in morning trading, helped propel its CEO Elon Musk into the upper stratosphere of the Bloomberg Billionaire Index. As of Tuesday, Musk's net worth had risen by $ 7.24 billion to over $ 128 billion. Only Jeff Bezos from Amazon stands in the way of becoming the richest person in the world.
Tesla shares were fueled last week by news that they would be added to the S&P 500 index in December. Since Friday, the company has increased its market capitalization by more than $ 52 billion – up nearly one and a half in Ford Motor Co.
The S&P Dow Jones Indices announced on Nov. 16 that Tesla would be officially added to the benchmark index ahead of December 21st trading, placing the electric car maker in the same company as heavyweights like Apple, Berkshire Hathaway and Microsoft.
If Tesla joins the S&P 500, it will be among the most valuable companies on the benchmark. The weighting will be so influential that the S&P DJI is considering adding the stock to the full float-adjusted market capitalization weight all at once or in two tranches.
Tesla's addition to the S&P 500 isn't just a symbolic nod. Joining the S&P 500 has real financial benefits as investors with indexed funds will be forced to buy stocks. With stock prices already falling, investors will have to sell other stocks to make way for Tesla.