Electric car manufacturer Tesla is likely to see an $8bn (£6bn) jump in demand for its shares from US funds when they are included in the S&P 500 next month, according to Goldman Sachs analysts.
S&P Dow Jones said earlier this month that Tesla shares would be admitted to America’s blue-chip index after reporting five consecutive quarters of profit.
Goldman Sachs analysts expect the admission of Tesla shares to the index, which is due to take place on December 21, will lead to a surge of funds seeking to build holdings in Tesla.
“Of the 189 large-cap core funds in our universe, 157 funds that manage around $500bn in assets under management did not hold Tesla on Sept 30,” the analysts wrote according to a Bloomberg report.
The increased demand could represent around 2pc of Tesla’s market cap, the analysts concluded.
The development could see a further boost to Tesla chief executive Elon Musk’s net worth.
Mr Musk overtook Facebook chief executive Mark Zuckerberg to become the world’s third-richest person following the announcement of Tesla’s upcoming S&P 500 admission earlier this month.
The tycoon’s net worth has risen to $123bn according to Bloomberg’s Billionaires Index, placing him just behind Microsoft co-founder Bill Gates’ $128bn fortune.
Mr Musk, 49, has risen more rapidly in the ranking of the world’s 500 richest people than any other person since the pandemic started.
Tesla’s market cap dropped by a third in September after S&P’s index committee snubbed the carmarker and excluded it from its main index.
Dan Ives of Wedbush Securities said the decision to include Tesla in the S&P 500 had removed a "key question mark" from the future of the company, which has frequently posted large losses in the past.
Tesla remains a heavily shorted stock, however, and has attracted criticism from incumbent carmakers.
Toyota boss Akio Toyoda said earlier this month that Tesla will lose out to older companies.
“They aren’t really making something that’s real – people are just buying the recipe,” he said. “We have the kitchen and chef and we make real food. When it comes to products, we have a full menu that will be chosen by customers.”