Goldman Sachs: Tesla's S&P 500 Entry Could Prompt Buying Spree
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Goldman Sachs: Tesla's S&P 500 Entry Could Prompt Buying Spree
On Thursday, lGoldman Sachs said large-cap mutual funds are on the verge of fueling a massive rally for Tesla shares.
Business Insider reports that Tesla is set to join the S&P 500 on December 21 as one of its 10 most valuable members.
Of the 189 large-cap core funds tracked by Goldman, 157 funds managing roughly $500 billion don't yet hold Tesla stock, the bank said.
Goldman says some funds may aim to hold Tesla at benchmark weight when it joins the index.
If so, Goldman said, funds will buy about $8 billion worth of shares soon after the automaker's inclusion.
