Tesla beats an entire energy industry leader index

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Tesla The market value of Inc. has surpassed that of the entire energy sector that it promises to disrupt.

The electric vehicle giant led by Elon Musk was up 43% in October, which helped push its market cap to $ 1.2 trillion, higher than the $ 1.1 trillion market value of the S&P 500’s energy sector.

The move demonstrates the power a small handful of stocks have over the US equity benchmark index, Bloomberg Intelligence strategist Michael Casper said in a statement. Although the energy sector, which contains 21 names, is the best performing group of the year, its influence on the market pales in comparison to mega-cap companies.

The top six stocks in the S&P 500 make up 25% of the index, according to data compiled by Bloomberg. And although Tesla currently has less influence on the index than the energy sector, this could change if the stock continues to rise.

“Although the weight of the Tesla index of 2.5% falls just below 2.8% of the energy (due to the S&P 500 using free floats to determine the weightings), it demonstrates the shift in dynamics from the forecast. corrected for sector movements upon obtaining the call on individual stocks for active managers, ”said Casper of BI.

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