Tesla, founded by billionaire Elon Musk, is joining the S&P 500, a milestone for the electric car maker which struggled for years to turn a profit.
Shares jumped in the extended session building on the 387% gain already this year hitting a yearly high in August.
On Monday S&P DJI announced that the automaker will be added to what is considered the broadest measure of the U.S. stock market, “prior to the open of trading on Monday, December 21 to coincide with the December quarterly rebalancing effective date.”
Additionally, S&P DJI noted that “based on recent market capitalization figures, 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.”
Tesla turned its fifth straight quarterly profit last month jumping 105% from the year-ago period to $0.76 per share, ahead of the $0.57 cent estimate, while total revenues climbed 39% to $8.77 billion, above the $8.36 billion that was expected. Analysts expect the automaker to post its first straight
The stock has advanced this year, in part on anticipation the inclusion was near, still, investors who mirror the benchmark index will likely need to boost or add shares of the company to their portfolios, a potential catalyst for the stock…Read more>>