Tesla's sour debut on the S&P 500 with falls of more than 5%

Tesla shares fell sharply on Monday after making history by becoming the largest company to be added to the S&P 500, the index based on the prices of 500 large companies and one of the most followed by investors.

Half an hour after the start of operations, Tesla stocks were down 5.22% on Wall Street, in contrast to the sharp rise of almost 6% they registered last Friday, when funds that track the S&P 500 were they rushed to buy huge amounts of shares to be true to the index’s track record.

Never before has a company with the market value of the electric vehicle manufacturer, with a market capitalization of about $ 625 billion, been added to this index, making it one of the ten largest on Wall Street.

The Elon Musk-led company has gained a lot of that value this year, with its shares racking up 731%, in part because of plans to include it in the S&P 500 and the subsequent interest it aroused among many investors.

Finally consistent earnings since the second half of last year, after years of mixing gains and losses, have also helped its stock market trajectory, something that had so far held back its inclusion in the popular index.

In the third quarter of this year, Tesla obtained the best results in its history, with a net profit of 331 million dollars, 218% more than in the same period of 2019, which allowed it until that date to accumulate profits of $ 435 million in nine months.

In October, the company also reported a record in the delivery of vehicles in the third quarter, 139,300, which represents an increase of 7% year-on-year.

The vertiginous rise of Tesla in the stock market has turned Musk, who owns a significant portion of the company’s capital, into one of the richest people in the world with a fortune that Forbes magazine estimates at about $ 146 billion.

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