While Tesla is not Elon Musk’s rocket company, it’s TSLA stocks are flying after it officially joined the S&P500 on Monday 17th November 2020. Joining the S&P500 is a big deal and investors have been waiting for this confirmation.
The S&P500 is a stock market index that is also called S&P, and it measures the stock performance of 500 large companies listed on US stock exchanges. Since it represents the US stock market growth, it is constantly changing.
Electrek reports that TSLA should have joined S&P500 since the first half of 2020. However, even after a reshuffling on the list in September 2020, the electric car company still remained outside. But, those days are over.
In an announcement, the board’s executive said: “On November 16, 2020, S&P DJI announced that TSLA will be added to the S&P 500 effective prior to the open of trading on Monday, December 21 to coincide with the December quarterly rebalancing
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There is no information on which company Tesla’s stock, TSLA will be displacing. But it is clear that this is not a minor news, in fact, S&P is asking for guide on how it should include Tesla in its exclusive club. It said:
“Due to the large size of the addition, 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 ending on the rebalance effective date.”
Following the S&P500 announcement, Tesla (TSLA) stock skyrocketed by 12%. This represents about $40 billion increase in the company’s market capitalisation. While there is no information on how it affects Elon Musk’s net worth, it will certainly increase it as well.
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