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While Tesla’s achievement is a remarkable feat for CEO Elon Musk, there are some dark sides to all of this that the public may not yet understand. The CEO is somewhat volatile, which is the secret to his success: Musk has been accused of financial fraud, smoked weed with a radio show host, mentioned that he feels that “the virus” is a lie, and fought with government officials on the internet.
Overall, I believe that being added to the S&P 500 could very easily be a crowning achievement for Musk and his amazing company, but there are definitely some significant risks. Other risks include the fact that Tesla hasn’t yet established itself as a major, mainstream automobile manufacturer, and that the company’s size and volatility can create issues for the S&P 500 as a major indicator of stock market economic health.
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