Tesla closing in on S&P 500

Tesla appears on the brink of joining the S&P 500, with analysts tipping the electric carmaker to overcome a key hurdle to joining the index.

The company looks on course to deliver its first cumulative four-quarter profit when its next quarterly announcement is made on July 22.

If Tesla is added to the S&P 500 it will likely unleash fresh demand for the company’s shares, which have surged 500 per cent over the past year. It will also be a major accomplishment for chief executive officer Elon Musk. 

Tesla is among the most loved – and hated – stocks on Wall Street. While its shares have climbed as people back the rise of renewable energy and the decline of fossil fuels, there are plenty of short sellers who predict Tesla’s stock will fall.

Increased sales of its Model 3 sedan and Model Y SUV have recently helped push the company’s market capitalisation past Toyota, making Tesla the world’s most valuable carmaker.

Cheeky approach

Musk tweeted on July 5 the company was launching limited-edition “short shorts” costing US$69.420 to the marque’s range of clothing and accessories. 

The red satin hot pants, pictured, appear to be taking a jab at short sellers and investors who have bet against Tesla’s market success. The price tag is also likely a reference to the US$420 share price Musk suggested in a 2018 tweet when considering taking the company private. 

Featuring the word “S3XY” on the back, a reference to Tesla’s car models, the shorts had sold out within 24 hours