Goldman Sachs Says Tesla's S&P 500 Debut Can Spark $8 Billion Demand

Nov 22 2020 05:33 PM
Goldman Sachs Says Tesla's S&P 500 Debut Can Spark $8 Billion Demand

The company Tesla has an impressive stock market rally might be on the verge of a further massive boost. The electric carmaker’s scheduled formation in the S&P 500 Index for December 21 and could result in $8 billion of demand. 

The analysts write, “Of the 189 large-cap core funds in our universe, 157 funds that manage around $500 billion in assets under management did not hold Tesla on September 30." The shares of the company were 0.5% lower US pre-market trading but set for a 22% weekly gain after Thursday’s all-time high. The performance of Tesla is the best large-cap stock in the US this year, soaring about 500%, as investors show increasing confidence that electric cars, trucks, and buses will dominate the future of the auto and transportation industries. Tesla’s market value burgeons, the Palo Alto-based company is also winning over some long-term atheists.

Morgan Stanley analysts this week gave Tesla an overweight rating for the first time in more than three years.

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