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

Eva Fox by Eva Fox November 07, 2021

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

The market value of Tesla Inc. (NASDAQ: TSLAsurpassed 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.

© 2021, Eva Fox | Tesmanian. All rights reserved.

_____________________________

We appreciate your readership! Please share your thoughts in the comment section below.

Legal Disclaimer --

This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

 






Previous  / Next