You guys, Elon Musk has really been on his best behavior the last few months. I mean, sure, there’s been this whole COVID kerfuffle of the last few days, but that’s positively tame compared to his declaration of war against California over matters quarantine the spring. He hasn’t picked any fights with the SEC, made any unsupportable claims, killed any dogs or set fire to any Walmarts, or drawn any libel suits, and compared to the “competition” he looks like a choir boy. A few tequila shots, under these circumstances, are hardly noticeable.
Now, we don’t know if this largely successful attempt at self-restraint was sparked by Standard & Poor’s decision in September to keep Tesla out of the S&P 500. Indeed, with the fourfold-plus rise in Tesla’s share price this year, it would be hard for the index-makers to continue snubbing what has become the most valuable carmaker in the world, and indeed a company worth more than 95% of the S&P 500’s current constituents. Either way, it didn’t hurt, and so on Dec. 21—and possibly a little earlier—TSLA will finally get to join the club.
“(Tesla) will be one of the largest weight additions to the S&P 500 in the last decade, and consequently will generate one of the largest funding trades in S&P 500 history,” S&P Dow Jones Indices said…. Its inclusion means investment funds indexed to the S&P 500 will have to sell about $51 billion worth of shares of companies already in the S&P 500 and use that money to buy shares of Tesla….
In a separate press release, S&P Dow Jones Indices asked investors for feedback about whether to include Tesla all at once on Dec. 21, or in two tranches, with the first added a week earlier, due to Tesla’s unusually large market capitalization.
Elon Musk, the maverick chief executive of electric car company Tesla, is poised to overtake Facebook’s Mark Zuckerberg to become the world’s third-richest person after Tesla’s shares jumped 13% following its selection to join the S&P 500 index of leading US companies…. That places Musk, 49, third on the league table of the world’s richest people in front of Zuckerberg, 36, with $106bn according to the Bloomberg Billionaires Index….
Musk, who owns 20% of Tesla’s shares and founded rocket company SpaceX, has experienced an increase of about $90bn in his fortune so far this year.