High-flying Tesla joins S&P 500; skeptics say buyer beware
by Tom Krisher, The Associated Press
Posted Dec 21, 2020 12:01 am EDT
Last Updated Dec 21, 2020 at 12:12 am EDT
DETROIT In the middle of last year, Tesla’s losses were piling up, sales weren’t enough to cover expenses and big debt payments loomed. The situation was so bad that one influential Wall Street analyst raised the possibility that Tesla wouldn’t be able to pay its bills and would have to be restructured financially.
Since then, the electric car and solar panel maker’s shares have skyrocketed, rising over 700% this year alone. Monday morning it will join the prestigious S&P 500 index with a market value of over $600 billion. It’s the largest addition in the history of the index.
Tom Krisher, The Associated Press
In the middle of last year, Tesla’s losses were piling up, sales weren’t enough to cover expenses and big debt payments loomed. The situation was so bad that one influential Wall Street analyst raised the possibility that Tesla wouldn’t be able to pay its bills and would have to be restructured financially.
Since then, the electric car and solar panel maker’s shares have skyrocketed, rising over 700% this year alone. Monday morning it will join the prestigious S&P 500 index with a market value of over $600 billion. It’s the largest addition in the history of the index.
Tesla became the most valuable company ever added to the S&P 500 on Monday
The electric carmaker s stock price closed at an all-time high of $695 on Friday
Those gains were erased in pre-market trading Monday as the stock price fell as much as 6.4 percent - opening at $665.11
At closing the shares had fallen even further to 6.67 percent below Friday s peak
Tesla s shares have skyrocketed more than 730 percent in 2020 Thanks to everyone who worked so hard to make Tesla successful. My heart goes out to you, CEO Elon Musk tweeted
The broader market took a dive on Monday amid fears over a new strain of the coronavirus that has shut down much of the United Kingdom
In the middle of last year, Tesla’s losses were piling up, sales were not enough to cover expenses and big debt payments loomed.
The situation was so bad that one influential Wall Street analyst raised the possibility that Tesla would not be able to pay its bills and would have to be restructured financially.
Since then, the electric car and solar panel maker’s shares have skyrocketed, rising about 700 percent this year alone. On Monday morning it joined the prestigious S&P 500 index with a market value of more than $600bn. It is the largest addition in the history of the index.
Tesla shares sell off as high flying tech stock joins S&P 500
In the middle of last year, Tesla s losses were piling up, sales weren t enough to cover expenses and big debt payments loomed. The situation was so bad that one influential Wall Street analyst raised the possibility that Tesla wouldn t be able to pay its bills and would have to be restructured financially.
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Shares in Tesla have been on a tear this year.(Christophe Ena/The Associated Press)
In the middle of last year, Tesla s losses were piling up, sales weren t enough to cover expenses and big debt payments loomed. The situation was so bad that one influential Wall Street analyst raised the possibility that Tesla wouldn t be able to pay its bills and would have to be restructured financially.