Tesla (TSLA) Sneaks Into the S&P 500

Daniel Fowler
November 18, 2020

The Californian EV maker's addition to the benchmark Dow Jones index has been anticipated for some time, and the company became eligible after reporting its fourth consecutive profitable quarter, and thanks to its market value now at $US386 billion ($A537 billion).

After months of speculation, vehicle manufacturing startup Tesla will become the newest addition to the S&P Dow Jones Indices on December 21, the index announced on Monday.

Shares of the carmaker, which have risen more than five-fold this year, were up 11% at US$453.42, and it was the eighth most traded stock, soon after opening in NY.

"[Tesla] will be one of the largest weight additions to the S&P 500 in the last decade, and consequently will generate one of the largest funding trades in S&P 500 history", S&P Dow Jones Indices said.

Tesla - whose stock closed at $408.09 - surged about 14 percent, lifting Musk's net worth to $117.5 billion, according to the Bloomberg Billionaires Index.

Twitter Adds New Disappearing Tweet Feature - What Are Fleets & How to Use?
Particularly, users requested an edit button - something that would allow changing the content of a tweet after it was posted. To share a Tweet in a Fleet , tap the "Share" icon at the bottom of the Tweet and then tap, "Share in Fleet ".

The massive valuation would make Tesla the largest company ever added to the S&P 500, a market-cap-weighted index consisting of top companies that represent "a broad cross-section" of the stock market. It felt like only a matter of time before TSLA was added to the most widely used benchmark of US equity performance.

A blockbuster quarterly report in July cleared a major hurdle for Tesla's potential inclusion.

That valued Tesla at about US$430 billion, more than the whole S&P gained on Monday after news emerged of successful Covid-19 vaccine trial data from Moderna Inc. Shares popped more than 12% at Tuesday's opening bell.

It's been an eventful few days for Elon Musk.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER