Palo Alto EV trailblazer Tesla Inc. to join S&P 500 in December 21 as shares soar 14%



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Palo Alto EV trailblazer Tesla Inc. to join S&P 500 in December 21 as shares soar 14%

Late on Monday, S&P Dow Jones Indices had issued a statement saying that the Nasdaq-listed stocks of Palo Alto, California-based electric carmaker, Tesla Inc., would join the benchmark Standard & Poor 500 Index on December 21, pointing towards a major triumph for Tesla boss Elon Musk.

On top of that, followed by the announcement of S&P Dow Jones Indices, shares’ prices of Tesla Inc. skyrocketed as much as 14 per cent in after-market trading to $462.65 per share after wrapping up the day almost unchanged at $408.09 apiece.

Notably, Nasdaq-listed stocks of Tesla Inc., the world’s largest automotive giant by market valuation ahead of Japan’s Toyota Motor Co., went for a five-to-one split a couple of months earlier.

Tesla to join S&P 500 prior to December 21 market opening

Concomitantly, latest move from S&P Dow Jones Indices came forth a month after Tesla Inc. had reported an upsurge in deliveries and quarterly earnings over the third quarter of the year despite the pandemic-driven drags, while adding that a Tesla Inc.

inclusion into the S&P 500 index, which would likely to come up in two tranches in order to make it easier for the investment funds, would generate one of the largest funding in S&P 500’s history, S&P Dow Jones Indices said, “(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.

” More importantly, while S&P 500’s addition of Tesla Inc.' s stocks which has a market cap well-above $400 billion, would mark up one of the largest inclusions ever into the index, Monday’s move from S&P Dow Jones Indices meant that investment funds would have to shrug off an approximated $51 billion worth of existing shares in S&P 500 in order to purchase Tesla Inc. shares.