The company’s stock surges amid S&P 500 addition
After months of waiting, it’s finally happening – Tesla is joining the S&P 500.
Tesla’s inclusion was long-touted, but in September, the odds weren’t in the company’s favor despite meeting the mandatory criteria. The committee didn’t pick the company to be part of the index. This decision came after Tesla reported a profit for the fifth consecutive quarter, having a revenue of $8.77 billion.
The company’s current market cap is at $387 billion, being more valuable than 95% of the present index companies. Given its value, it also the largest company ever to be included in the index. Its stock quadrupled in value since its 5:1 split.
Tesla will be added before the opening bell on Monday, December 21.
Following the news, Tesla stock price jumped 13%. At the moment of writing, during pre-market trading, its stock price gained another 13%.
Sources: cnbc.com
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