Road to Tesla S&P 500: Morgan Stanley increases TSLA price target to $540

-

-Advertisement-

By now we know that Tesla (TSLA) is all set to be listed as an S&P 500 by the 21st of December, announced in a press release by S&P Dow Jones Indices earlier this week.

As of this writing, Tesla has reached a massive market cap of $431.42 billion, making it the largest ever company to be added to the S&P 500 index. For this very reason, the S&P Dow Jones Indices is waiting on feedback from its investors if TSLA should be added to the index at once or in two phases.

Tesla Inc. (NASD:TSLA) will be added to the S&P 500 effective prior to the open of trading on Monday, December 21 to coincide with the December quarterly rebalance. Due to the large size of the addition, S&P Dow Jones Indices is seeking feedback through a consultation to the investment community to determine if Tesla should be added all at once on the rebalance effective date or in two separate tranches ending on the rebalance effective date. Tesla will replace an S&P 500 company to be named in a separate press release closer to the rebalance effective date.

S&P Dow Jones Indices / Press Release

When we last reported on the possible inclusion of TSLA to the S&P 500 index in June, we discussed all the opportunities and benefits that come with this achievement.

Frunk cooler for Tesla Model Y, 3, and X by EVANNEX .
– Sponsored –

Now the New York-based Morgan Stanley investment firm has increased its price target for TSLA from $360 to $540 and at the time of this writing, TSLA’s share price has already reached $455.92.

Morgan Stanley thinks you cannot estimate Tesla’s worth by only looking at it as a car company, the other business models and revenue streams like FSD Software and Energy Storage should also be considered.

Dow Jones Indices estimates that TSLA stock’s Approximate Pro-Forma Weight in S&P 500 index will be 1.01% with an estimated funding trade* of ~$51 billion. With the world’s 500 top companies in the pool, a 1% share in the entire S&P 500 cluster is a significant chunk of the trade.

*The estimated funding trade is calculated using an estimate of % of assets indexed to the S&P 500 derived from S&P DJI’s Annual Survey of Assets as of Dec 31, 2019, multiplied by the approximate Pro-forma Weight of TSLA in the SS&P 500 as of 11/13/2020.

Source: S&P DJI
TSLA Float Market Share estimation after S&P inclusion.
Chart: TSLA Float Market Share estimation after S&P inclusion. Source: Rob Maurer / Tesla Daily.

Tesla bull Rob Maurer deeply analysis TSLA S&P 500 in the following video and explains the Tesla float market cap chart we can see above.

Stay tuned for more updates and articles, follow us on:
Google News | Flipboard | RSS (Feedly).

More on Tesla:

Iqtidar Ali
Iqtidar Alihttp://www.teslaoracle.com
Author of more than 1500 articles on Tesla, SpaceX, and EVs. His work has been liked and tweeted by Elon Musk and other prominent influencers. You can reach him on Twitter @IqtidarAlii

Latest News

SpaceX (SPCX) reported revenue growth of 92% YoY and a net loss of $541 million in Q2 2026

After market close today, Elon Musk's space exploration, satellite deployment, and AI company SpaceX (NASDAQ: SPCX) posted its first...

Tesla Summer Update 2026.26: features, release notes, and rollout status

This year's Tesla Summer Update doesn't disappoint once again. The feature-packed 2026 Summer Update is now out to Tesla...

Tesla driver survives in Twin Falls shooting, owners ask for emergency charge port unlock at Superchargers to flee safely

Although the shooter in the Twin Falls, Idaho incident is now deceased, he has left a terrible mark on...

Tesla (TSLA) celebrates the production of its 10-millionth EV at the Fremont factory

The US-based electric vehicle maker Tesla, Inc. (TSLA) produced its 10-millionth vehicle at its Fremont, California factory this week. Tesla...
- Advertisement -

SpaceX (SPCX) reported revenue growth of 92% YoY and a net loss of $541 million in Q2 2026

After market close today, Elon Musk's space exploration, satellite deployment, and AI company SpaceX (NASDAQ: SPCX) posted its first...

SpaceX to attempt Starship catch in Flight 14, as Flight 13 Ship 40 landed precisely

Elon Musk has hinted that SpaceX will attempt to catch the Starship upper stage in the next launch-and-landing test...

Flight 13 Starship 40 is still floating in the Indian Ocean after 100 hours of its soft landing; Elon Musk shares the latest video,...

SpaceX (SPCX) launched Starship for the 13th time from its Starbase, Texas, launch site on Friday, July 24. The...

Tesla Tips & Tricks

Tesla Model Y/3 heat pump issue in cold weather might not be fixable with just a software update

Canada's extreme cold weather is taking a toll on...

Defrost Mode lets you remotely melt snow from your Tesla in just minutes (videos & how to guide)

Tesla (TSLA) electric cars are unique in many ways...

Here’s how much battery is drained if a Tesla is left unplugged for 32 days

A Tesla Model 3 owner parked her car in...

Tesla Quarterly Reports & Eearnings

- Advertisement -

You might also likeRELATED
Recommended for You