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Tesla joins S&P 500

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Miguel A. Rodriguez
Miguel A. Rodriguez
17 November 2020
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

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.