UPDATE 1-Tesla market value crosses $500 bln as shares surge six-fold this year

(Updates shares, adds details on Musk's net worth, analyst comment)

By Subrat Patnaik

Nov 24 (Reuters) - Tesla Inc crossed $500 billion in market value on Tuesday as investors lapped up its shares in the run-up to its addition to the S&P 500 index, extending a meteoric rally that has seen the stock gain more than six times this year.

Shares of the electric-car maker have risen nearly 28% since the S&P Dow Jones Indices decided to add the company to the benchmark index from Dec. 21.

Its shares rose as much as 3.9% to a record high of $542.35 in early trading, valuing the company briefly at $514 billion.

The recent rally has also boosted Chief Executive Officer Elon Musk's net worth by $7.2 billion to $127.9 billion, helping him go past Bill Gates to become the world's second-richest person, according to the Bloomberg Billionaires Index.

Musk, who was ranked 35th in January, has added $100.3 billion to his net worth so far this year, according to the index.

Tesla has become by far the world's most valuable automaker, despite a production that is a fraction of Toyota Motor Corp , Volkswagen AG or General Motors Co.

Shares of other electric vehicle (EV) makers have also risen in the last few months as President-elect Joe Biden made boosting EVs a top priority during his campaign.

"One of the core underpinnings of the Biden platform will be around pushing clean energy and zero-emissions vehicles with hopes of accelerating the deployment of electric vehicles and public charging outlets by 2030," Wedbush analyst Daniel Ives said in a note.

(Reporting by Subrat Patnaik in Bengaluru; Editing by Arun Koyyur)