Shares of Tesla Inc. they climbed to a record high on the eve of their inclusion in the S&P 500, marking a 2020 rally that propelled the electric car maker to the ranks of the most valuable American companies.
Large fluctuations in Fremont, California shares overshadowed a bleak day for the broader market, which saw the Dow industry fall 124 points, or 0.4%, to 30179. The last moments of the market day, when indexed funds S&P watchers have begun preparing to buy billions of dollars worth of Tesla shares to match their broad index holdings.
Tesla shares rose in the morning before collapsing in late afternoon trading and trading in and out of the red in the last hour. They ended up with a $ 39.10, or 6% to $ 695, closing record – about $ 40 a share over their last transaction in the moments before the Nasdaq market closing auction. Traders said adding the company to the broad index raised the possibility of an epic takeover as indexed funds rushed to buy shares.
Investors who watched the rise and fall until the latter part of the trading day suffered “a bit of whiplash there,” said Mike Bailey, research director at FBB Capital Partners.
“He was definitely a little agitated there for the last hour,” Mr Bailey said.