2020 has been quite the ride, and it’s not over yet.

One of the craziest rides of the year has been the phenomenal growth of Tesla’s share price, and at the close of trading this Friday it will officially join the S&P500 index as the 7th largest holding.

Since the start of 2020, Tesla’s share price has grown by an astounding 657%, compared to a 16.39% total return for the S&P500 index:

The stars have aligned for Tesla bulls, but it is important to consider that its addition to the S&P500 is a zero sum game. It is forecast, that Tesla will be added as a 1.5% weighting. This implies that approximately 1.5% of all S&P500 holdings will be put up for sale to make room for Tesla’s inclusion, meaning that there will be a record amount of stock for sale.

The Latvian version of this article is available in print in the December 2020 issue of Forbes Latvia.

The story of capitalism is the story of creative destruction.

A concept often presented as a critique of the system, especially in the context of today’s push for sustainability, creative destruction is the process of industrial transformationthat continuously revolutionizes the economic structure from within, dismantling long-standing practices in order to make way for new methods and technologies. In essence that constant innovation leads to obsolescence.