Tesla to join S&P 500

Tesla will be added to Standard & Poor’s (S&P) 500 Index on December 21.

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 because of the addition’s large size, S&P Global says.

The S&P 500 is a market-capitalisation-weighted index of the 500 largest US publicly traded companies.

Tesla will replace a S&P 500 company to be named closer to December 21.

Stocks in the company soared after the announcement, Teslarati reports.

Adding Tesla to the S&P 500 is expected to broaden the investor base.

To be included in the S&P 500 a company must have a market capitalisation of US$8.2 billion or more and report four consecutive profitable quarters.

Tesla has had five consecutive profitable quarters and earlier reported its best Q3.

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