Shares of electric car maker Tesla have recorded a decline ahead of their debut on the S&P 500 today, as concerns over the spread of a new rapidly spreading coronavirus in Britain are affecting the market.
Moreover, Tesla shares recently fell around 4% in the pre-market trading session after closing at a high of $ 695 last Friday while futures for the S&P 500 fell around 1.5%.
Tesla's addition to the S&P 500 prompted index tracking funds to buy US $ 90.3 billion shares at the end of last Friday's session until their portfolios reflected the index. In addition, the change allegedly took place before the opening of today's trading session.
Also, for every Tesla $ 11.11 move, the S&P 500 changes one point, while the S&P 2021 price / earnings ratio will increase to 22.6 from 22.3.
In addition, dividend yields for S&P after Tesla entry will drop to 1.53% from 1.56%.
However, the increase in California-based Tesla shares has placed its market value around $ 660 billion, making it the most publicly listed U.S. company.
So far, Tesla is the most traded stock on Wall Street, with $ 18 billion worth of shares traded on average in each session over the last 12 months, easily beating Apple, in second place with an average daily trade of $ 14 billion.
However, Tesla did not want to comment on the issue.
