(ATF) Tesla shares rose above $500 billion in market value on Tuesday November 24, as its impending arrival in the S&P 500 index gave a further boost to a rally of over 500% this year.
The demand for Tesla shares has delivered a dramatic boost to trading volumes in Chinese electric vehicle shares that are listed on the New York Stock Exchange (NYSE).
Nio shares on the NYSE briefly joined Tesla in hitting a new record high before falling back to close the US trading day down by 3.38%.
There was heavy dealing volume in Nio, which saw roughly 242 million shares change hands.
Lower stock prices for the NYSE-listed shares of the Chinese electric vehicle firms are helping to generate volumes that can be higher than those for Tesla, which has a far higher price per share trade.
XPeng joined Nio in closing the day down slightly, with a -2.13% fall in its stock price, on volume of 99 million shares.
Li Auto was barely changed at +0.73% on the day, on volume of 64 million shares.
Nio in particular has seen exceptional volumes for its shares during certain days in November, with volume of 580 million on November 13. XPeng hit daily volume of over 100 million on Monday and Li Auto has touched 85 million this month.
Tesla has now become the most valuable automaker in the world, despite vehicle production that is a fraction of the levels generated by more established firms such as General Motors, Toyota and Volkswagen.
Its founder Elon Musk is now also the second richest person in the world due to the value of his Tesla shares, supplanting Bill Gates in the number two slot on Monday - while remaining behind Amazon’s Jeff Bezos as number one.
Tesla shares are up by over 30% since it was announced on November 16 that it would join the S&P 500 index.
That announcement was also a cue for a further dramatic rise in both the stock prices and share volumes for the Chinese electric vehicle companies that are competing for share in the Asian market for clean energy transportation.
The election of Joe Biden as the next US president has helped to give a further boost to shares in Tesla and other electric vehicle producers, as this is viewed as likely to give a boost to a clean energy agenda and revive global efforts to cut emissions.
China also has ambitious targets to cut emissions and encourage a shift to use of electric vehicles - with a target of roughly 25% for new autos sold by 2025.