Elon Musk's wealth surges after Tesla selected to join S&P 500 Index

Elon Musk's wealth surges after Tesla selected to join S&P 500 Index

Elon Musk’s wealth swells by $15Bn and he’s set to pass Mark Zuckerberg as the third richest person in the world after Tesla was selected for the S&P 500 index

  • Tesla will join the S&P 500 Index on December 21, it was announced Monday
  • The news led Tesla stocks to surge 14 percent in after-hour trading
  • CEO Elon Musk’s fortune surged by $15billion to $117.5billion Monday night
  • He’s poised to surpass Mark Zuckerberg to become world’s third richest person
  • Tesla will be the largest company ever added to the index after the carmaking company didn’t make the cut back in September

Billionaire entrepreneur Elon Musk is poised to become the third-richest person in the world, passing up Mark Zuckerberg, after his electric car company Tesla was selected to join the S&P 500.

Tesla’s value soared in after-hour trading on Monday with stocks that closed at $408.09 surging about 14 percent by 6pm.

Tesla will enter the S&P 500, a stock market index that measures the performance of 500 large companies listed on the US stock exchange, on December 21 after it failed to make the cut back in September.  

The news led Musk’s net worth to swell by more than $15billion in extended trading, lifting his fortune to $117.5billion, according to Bloomberg.

As of Monday’s close Musk was listed as the fourth richest person in the world behind Facebook’s Zuckerberg, who follows behind Microsoft’s Bill Gates and Amazon’s Jeff Bezos on Bloomberg’s Billionaire Index.

Billionaire entrepreneur Elon Musk, 49, is poised to become the third-richest person in the world, passing up Mark Zuckerberg, after his electric car company Tesla was named on Monday to join the S&P 500 

Tesla’s value soared in after-hour trading on Monday with stocks that closed at $408.09 surging about 14 percent by 6pm

This year has been a wildly successful year for Musk – who saw his rocket company SpaceX send four astronauts into space this week. This year alone the 49-year-old has seen his fortune grow by $90billion. 

However, adding Tesla isn’t as easy as it sounds as it will be the largest company ever added to the index, as per CNBC.

‘Due to the large size of the addition, S&P Dow Jones Indices is seeking feedback through a consultation to the investment community to determine if Tesla should be added all at once on the rebalance effective date or in two separate tranches ending on the rebalance effective date,’ S&P said in a statement 

In September Tesla met the criteria to be included in the S&P 500 but wasn’t picked by the committee that determines which companies make on the list. 

The S&P is used as a representation of the market and is reshuffled to better represent the market and this time Tesla made the cut. It’s not clear which S&P 500 company Tesla will replace.

Musk announced Saturday he ‘most likely’ has a moderate case of COVID-19 and has symptoms of a ‘minor cold’. On Sunday he tweeted he had no symptoms. 

Musk announced Saturday he ‘most likely’ has a moderate case of COVID-19 and has symptoms of a ‘minor cold’. On Sunday he tweeted he had no symptoms

Tesla is now valued at more than Disney, Toyota and Coca-Cola and has a market cap of nearly $387billion.

To be eligible to join the S&P 500 a company must be based in the US, have a market capitalization of at least $8.2billion, be liquid and at least half of its shares must be available to the public, as per CNN. Companies must also report four straight quarters of profit.

Tesla reported its fifth consecutive quarter of profit with third-quarter revenue of $8.77billion.  

Source: Read Full Article