Tesla TSLA Surpasses a Whole S&P 500 Index Worth of Energy Industry Leaders

The market value of Tesla Inc. (NASDAQ: TSLA) surpassed the value of the entire energy sector of the S&P 500. The manufacturer's shares rose 43% in October, helping to raise its market capitalization to $1.2 trillion. In addition to having a market cap that has surpassed the combined value of the 12 most valuable automakers in the world, Tesla is also above the $1.1 trillion market value of the entire energy sector in the S&P 500.

This demonstrates the impact of Tesla stock over the benchmark U.S. stock index, said Bloomberg Intelligence strategist Michael Casper, in a note. Although the energy sector—which includes 21 companies—is the best group of the year, its market impact pales in comparison to mega-cap companies. According to data compiled by Bloomberg, the top six stocks in the S&P 500 account for 25% of the index. And while Tesla currently has less impact on the index than the energy sector, that could likely change if stocks continue to rally.

“Though Tesla's index weight of 2.5% falls just shy of energy's 2.8% (due to the S&P 500 using float shares to determine weightings), it demonstrates the shifting dynamic from correctly predicting sector movements to getting the call on individual stocks right for active managers,” said Casper.

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