Tesla Joins Wall Street’s S&P 500 Share Index As Sixth Largest Member
After months of anticipation, Tesla has joined Wall Street’s S&P 500 share index as its sixth-largest member.
The electric car company joins the likes of Amazon, Apple and Facebook days after Tesla shares surged to a record high of $695 (£520) on Friday, December 18.
Making its debut today, December 21, shares actually fell by around 5%. Regardless, the entry is a milestone for the company’s founder, Elon Musk.
Earlier today, he took to Twitter to thank his supporters: ‘Thanks to everyone who worked so hard to make Tesla successful. My heart goes out to you,’ he said.
It’s been a lucrative year for Musk, who has grown his net worth by more than $127 billion in the last 12 months.
Today, the Bloomberg Billionaire’s Index places him as the second richest person in the world, with an overall net worth of $167 billion (£125 billion).
In the last year, shares in Tesla have rocketed by more than 700%. Despite its success, the company is yet to make a profit from a single financial year.
Musk, who owns 21% of Tesla, stepped down as chairman of the company in 2018 after his claims to take Tesla private triggered a probe from the US Securities and Exchange Commission.
In November, he told a fan on Twitter that the electric car company was just one month away from bankruptcy ahead of the mass production of its Model 3.
The Model 3, Tesla’s cheapest car, began mass production in 2017. When asked by one user how close Tesla was from bankruptcy when bringing the Model 3 to mass production, Musk said ‘about a month’.
‘The Model 3 ramp was extreme stress & pain for a long time — from mid 2017 to mid 2019. Production & logistics hell,’ he added.
Speaking of his fortune to Forbes in an email in July, Musk said he ‘really couldn’t care less’.
‘These numbers rise and fall, but what really matters is making great products that people love,’ he added.
On December 8, it was reported that Musk had left his home in California in favour of Texas, where Tesla’s new factory is being built.
The move means that all three of the richest people in the world now live in US states that do not collect income tax.
The world’s richest man, Jeff Bezos, who has a net worth of more than $183 billion, lives in Washington State.
Microsoft creator Bill Gates, who is third place on the index with a total worth of $131 billion, also lives in Washington State.
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