Tesla Finally Gets Green Light to Join S&P 500

Wikimedia

Tesla stock price surged ahead in after hour trading as  it  announced that it would be included in the S&P in December. The stocks went up almost 12%,  adding over $40 billion in market capitalization to the company. This surge was expected as a company’s stock price generally increases after it’s added to S&P 500 as funds tracking the Index generally buy into it.

Some analysts were surprised that Tesla was not included in the September shuffle as Tesla has been increasing profits continuously in the last five quarter.

“On November 16, 2020, S&P DJI announced that TSLA will be added to the S&P 500 effective prior to the opening of trading on Monday December 21 to coincide with the December quarterly rebalancing effective date.”

Tesla’s inclusion is a significant step forward. “Due to the large size of the addition, S&P Dow Jones Indices is seeking feedback through a consultation to the investment community to determine if Tesla should be added all at once on the rebalance effective date or in two separate tranches ending on the rebalance effective date.”

S&P has not as yet mentioned which company will be removed from S&P 500, when Tesla starts trading on the exchange.

Source electrek

SpaceX Sends 2nd Crew To ISS: Founder Musk Monitors Action from Afar

DoorDash IPO Coming To The New York Stock Exchange

Comments


CWEB.com is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, CWEB.com relies upon the “publisher’s exclusion” from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.

Full Disclaimer

%d bloggers like this: