Tesla shares hit the skids as it makes debut on Wall Street’s S&P 500

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Tesla shares hit the skids on S&P debut: Analysts say tracker funds inflated electric car firm’s value

By Daily Mail City & Finance Reporter

Published: | Updated:

Tesla shares fell yesterday as it made its debut on Wall Street’s S&P 500.

The blue-chip index measures the stock market performance of 500 of the largest public companies in the United States.

The electric car maker – which is run by billionaire Elon Musk – is the biggest firm to join the S&P and its shares gained 60 per cent in value after the change was announced last month. But yesterday they dropped 6.5 per cent to $650 each.

Tesla – which is run by billionaire Elon Musk (pictured) – is the biggest firm to join the S&P and its shares gained 60 per cent in value after the change was announced last month

Some analysts suggested this was because a rush by tracker funds to snap up the stock before yesterday had inflated its value.

Nevertheless, Tesla’s admission to the S&P comes after huge growth in its shares, which are up by more than 600 per cent this year.

A year ago they were changing hands for about $84 each but now it is the sixth-largest company in the S&P behind the likes of Facebook.

Chris Ford, co-manager of Smith & Williamson Artificial Intelligence Fund, which holds Tesla shares, said the company has ‘so far proved the doubters and short sellers wrong’.

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