Tesla’s market value hits more than $600B for first time joining ultra-small club

Longtime Tesla naysayer reduces positon amid towering losses on his Tesla short: Gasparino

Jim Chanos tells FOX Business’ Charlie Gasparino that he still has issues with Tesla’s balance sheet and financials even as he reduces his short position.

Tesla and CEO Elon Musk are tipping the scales yet again with new milestones.

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The market value of the electric vehicle maker reached $608 billion on Monday for the first time and is now just one of five S&P 500 companies to join the exclusive club as tracked by Dow Jones Market Group.

The company is set to be added to the index, which is the broadest measure of the stock market, on December 21, and since the inclusion was announced last month investors have pushed the stock to record highs of $641.76 per share growing the market cap by $221.49 billion.

A surging stock price is hitting short-sellers hard, including Jim Chanos who is one of Wall Street's most skilled betters against companies. Last week he disclosed in an interview he is no longer short the company while offering rare praise to Musk.

TESLA SHORT SELLER CHANOS CHANGES TUNE

TickerSecurityLastChangeChange %
TSLATESLA INC.641.76+42.72+7.13%

Fund managers that mirror the S&P are likely adding positions, while selling other names such as Amazon.com, according to Scott Redler, chief strategist at T3 Trading Group.

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TickerSecurityLastChangeChange %
AMZNAMAZON.COM INC.3,158.00-4.58-0.14%

Last month, in anticipation of demand for the stock, the team at S&P Dow Jones Indices considered adding it to the S&P 500 in “tranches,” which would have been the first time in history this process would have been used.

TESLA TO ENTER S&P IN ONE SHOT

However, after feedback from the investment community, the firm determined shares will be added in one shot or "at its full float-adjusted market capitalization weight effective prior to the open of trading on Monday, December 21, 2020" the firm disclosed last week.

Tesla’s rising stock price is also making Musk even wealthier with a net worth of $143 billion, per Forbes. He is now the world’s third-richest person, neck-in-neck with LVMH Chair Bernard Arnault and nipping at the heels of Jeff Bezos, the world’s richest man, who is sitting on $184 billion fortune.

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