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Tesla joins key share index

Shares suffer rare dip in a year that has seen the carmaker’s market value soar past its rivals.
Posted on 22 December, 2020
Tesla joins key share index

Tesla has hit a new milestone after making its debut on America’s S&P 500, which provides millions more investors with an opportunity to hold a stake in the electric car maker.

The marque is the most valuable company added to Wall Street’s main benchmark and the move follows a year when demand for its cars has remained resilient despite the Covid-19 pandemic.

Shares in Tesla, headed by billionaire Elon Musk, have increased more than 700 per cent in 2020.

A six per cent jump on December 18 took its share price to a record US$695 and drove its market value up to about US$630 billion (NZ$809b).

This makes the California-based business the most valuable carmaker in the world and the sixth most valuable company on Wall Street, behind tech giants such as Apple and Amazon.

It has enjoyed a meteoric financial rise despite its sales figures only being a fraction of rivals such as Toyota, General Motors and Volkswagen.

Tesla’s shares suffered a drop on the day it made its S&P 500 debut on December 21 after worries about a new coronavirus strain in the UK weighed on markets.