Tesla jumps 6% in heavy quantity forward of S&P 500 entry, inventory then falls a bit in after hours
People wearing face masks are seen in a Tesla showroom at a mall in Wuhan, Hubei province, the epicenter of the Chinese coronavirus disease (COVID-19) outbreak on March 30, 2020.
Aly Song | Reuters
Tesla’s stock traded more than four times its average 30-day volume on Friday when passive funds bought the stock before Tesla joined the S&P 500. The stock will close before the opening bell on Monday based on Friday’s prices added to the benchmark index.
Amid the increase in volume, Tesla shares rose 5.96% on Friday, hitting a record high of $ 695 after switching between gains and losses in the last hour of trading. During after-hours trading, the stock fell approximately 3%.
The increased activity continued after hours, and by 4:45 p.m. ET, more than 200 million stocks had switched hands. That’s more than four times the average 30-day volume of the stock of 44,946,455, according to FactSet. Friday’s volume puts it in the top 10 most active trading days for the stock.
Based on Tesla’s Friday average price of $ 679.85, more than $ 131 billion of stocks changed hands.
Ahead of Friday’s meeting, S&P Dow Jones Indices estimated index fund managers would need to buy approximately 129.9 million Tesla shares valued at more than $ 85 billion.
However, investors unofficially tracking the S&P 500 also had to buy the stock, which is estimated to result in buying activity 50% to 100% above estimates.
– CNBC’s Robert Hum contributed to the coverage.
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