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Despite the fact that the U.S. economy entered a recession earlier this year, the stock market has been on fire. One of its breakout stars has been Tesla (TSLA), which has experienced a 700% jump in stock price since the start of 2020.
As a result, the electric vehicle and clean energy company founded by Elon Musk has been invited to join the S&P 500 Index, and today marks its inauguration. It’s a prestigious honor reserved for America’s top publicly traded companies. But it’s not just big news for Musk or Tesla shareholders.
Now that Tesla is part of the S&P 500, you can own a piece of 2020’s hottest stock by investing in index and exchange-traded funds. It also means that the typically steady market index may see some bigger ups and downs thanks to the addition of this somewhat volatile ― and possibly overvalued ― stock.