Task

1. What are your thoughts on the article?

2. Compare Tesla (Ticker: TSLA) to Berkshire Hathaway (Ticker: BRK.A). Use the "Statistics" tab after looking a ticker symbol to provided the following information.

a. What is each company's market cap?

b. What is each company's free cash flow?

c. What is each company's net income (ttm)? TTM refers to trailing twelve months.

3. Based on some of the information you looked up for Tesla and Berkshire Hathaway, do you think Tesla's common stock is appropriately priced? Why or why not?

Tesla's market value soars to $500bn ahead of S&P 500 debut

Tesla's market value has surged over $500bn after a fresh wave of buying ahead of the electric carmaker's debut on the blue-chip S&P 500 stock index next month.

Shares in the company founded by Elon Musk have risen more than six-fold this year, hitting $555 on Tuesday. S&P Dow Jones Indices last week said it would include the group on the US stocks benchmark, which has stoked the price rise as institutions and index-tracking funds adding the shares. The stock has jumped a third in the past eight days.

Mr. Musk's net worth has climbed in tandem with the stock, swelling by$100bn since the end of last year to $127.9bn, according to Bloomberg data.

"Tesla shares have been one of the remarkable stories of 2020," said David Kostin, Goldman Sachs chief US equity strategist in a research note, adding investors had been "focused" on its hefty rise in market capitalisation this year.

Tesla's gains came amid a broad rally in global equities that propelled theDow Jones Industrial Average to 30,000 for the first time. The rise has been driven by optimism about the development of coronavirus vaccines and Donald Trump allowing the formal transfer of power to Joe Biden to begin.

Tesla's debut on the S&P 500 next month will be the biggest on record, instantly making the company one of the largest weights on the index.

Tesla's market value surges to half-a-trillion dollars $bn 500 400 300 200 100 Q1 20 Q2 20 Q3 20 Q4 20Tesla exceeds past S&P 500 entrants Size of major S&P additions since 1999 Float mkt cap ($bn) AOL Yahoo Qwest Comm JDS Uniphase Goldman Sachs UPS Google Berkshire Hathaway Facebook Tesla 0 50 100 150 200 250 300 Source: S&P Dow Jones Indices OFT