Reported by Bankinter
Elon Musk’s company joins the Nasdaq 100 this Tuesday – the US stock market index comprising the 100 most significant companies in the technology sector – after 15 trading sessions on the Nasdaq.
Specifically, it will be included with a weighting of 0.77%. The requirement imposed by the index is that it must trade at a minimum of between three times its free float and its total market capitalisation.
Its free float will increase until approximately the Q3 results announcement (around November or the end of this year).
Bankinter analysis team’s view:
Technical impact, given the need for passive funds to replicate the index. This increases share price volatility.
