Tesla Motors Inc. will join the Nasdaq-100 Index next week, replacing Oracle Corp. which is shifting to the New York Stock Exchange. Tesla will be included to the index, which tracks the largest companies on Nasdaq, before the start of trading on July 15, 2013, according to Nasdaq OMX Group Inc. Oracle is so far the largest company to move between Nasdaq and NYSE.
Tesla's shares are considered the best-performing automotive stock in the world this year, as its value more than tripled so far. The surge in Tesla's share value is mainly attributed to the popularity of its Model S sedan that helped it post its first quarterly profit.
Being included in stock benchmarks has been enticing to public companies since it guarantees a shareholder base. Sandy Mehta, chief executive officer of Value Investment Principals Ltd., told Bloomberg that joining the index could be considered as a "coming of age," a recognition that a company has market cap and liquidity.
He remarked that once Tesla's stock joins the index, "you will have some buying." Tesla's shares closed Tuesday trading up $1.84 at $123.45 following the announcement. Tesla expects to sell 21,000 Model S this year, with deliveries to Europe and Asia to start in the second half.
Many consider the Tesla Model S as the best example when it comes to the evolution of automotive engineering. They are not wrong as this model is the first sedan to be fully powered with electricity. With an excellent mix of efficiency, performance, and safety, the Model S has managed to redefine what customers should expect from a 21st century car.
Not only does it offer the longest range for an EV but it comes with safety ratings that are considered one of the highest. Further, software updates are available over-the-air, ensuring that the Model S is always improved. There is no doubt that the Model S is one of the safest cars to drive on the highway. This is mainly due to the use of the brand’s very own platform wherein the distinct electric drivetrain has been placed on the floor and under the car. Because of this configuration, the center of gravity is extremely low resulting in the risk of rollover being reduced.
That the Model S has an excellent safety record is shown by the 5-star safety ratings it received from both the NHTSA and even the Euro NCAP. During tests conducted in the U.S., the Model S managed to set a new record when it comes to the lowest possibility of injuring occupants. The excellent safety record is not solely due to the use of the brand’s architecture but also due to a number of active safety features equipped as standard. These include lane departure warning, collision warning, blind spot detection, and automatic emergency braking.
Tesla will also be offering features aimed at convenience as an option. Examples include summon, cruise control, autopark, and autosteer. All of these combined mean that the Model is truly the safest vehicle out there. As mentioned earlier, the drivetrain is under the floor which means that the battery is also in the same region. While it lowers any rollover risk, it improves the performance and the handling.
In addition, since there is no engine, the crumple zone of the Model S is larger. This allows it to absorb more energy, compared to other performance sedans, should an impact on the front section occurs. Talking about the electric all-wheel drive, it has two motors with one being positioned in the front and the second one in the rear. In addition, the torque that is channeled to the front wheels, and even the rear ones, are controlled independently and digitally.
As such, no matter what the situation may be, unmatched traction is guaranteed. While standard all-wheel drive models generally have increased traction at the expense of fuel efficiency, the Model S instead improves the fuel efficiency.