S&P 500 welcomes Tesla
Huge triumph or unmitigated disaster? The inclusion of Tesla in the S&P 500 comes with high hopes and ominous forebodings. Shares of Elon Musk's company rose to a record high on Friday in a frantic day of trading as investors geared up for the electric carmaker’s much anticipated entrance into the benchmark S&P 500 index. At the same time, some experts are warning that a crash may be on the horizon. Tesla on Monday will become the most valuable company ever admitted to Wall Street’s main benchmark, accounting for over 1% of the index. The shares have surged some 70% since mid-November, when its debut in the S&P 500 was announced, and have soared 700% so far in 2020. Tesla’s shares ended up 6% at a record $695. Tesla’s addition to the S&P 500 is forcing index-tracking funds to buy about $85 billion worth of the shares by the end of Friday’s session so that their portfolios reflect the index, according to S&P Dow Jones Indices. Those funds simultaneousl...