Tesla: share jumps as company finally joins S&P 500
(CercleFinance.com) - Tesla shares jumped over 12% in early trading on Tuesday after the Californian electric car maker was included in the S&P 500 index.
S&P Dow Jones Indices said in a statement last night that it was adding Tesla to the S&P 500, effective Monday 21 December, to coincide with the December quarterly rebalance.
Due to the company's large capitalization, S&P Dow Jones Indices is seeking feedback through a consultation with the investment community to determine whether Tesla should be added all at once, or in two separate tranches.
Tesla, which has roared ahead almost 400% year-to-date, now has a market valuation in excess of 430 billion dollars, making it one of the most valuable companies traded on Wall Street.
The S&P inclusion is a key positive for the Tesla stock, which has been challenged over the past month, falling by 5%, analysts say.
"With the S&P add, the focus for the stock returns to executing on the growth plan," Credt Suisse pointed out in a note.
Tesla will replace a S&P 500 company to be named in a separate press release prior to the 21 December rebalancing effective date.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
S&P Dow Jones Indices said in a statement last night that it was adding Tesla to the S&P 500, effective Monday 21 December, to coincide with the December quarterly rebalance.
Due to the company's large capitalization, S&P Dow Jones Indices is seeking feedback through a consultation with the investment community to determine whether Tesla should be added all at once, or in two separate tranches.
Tesla, which has roared ahead almost 400% year-to-date, now has a market valuation in excess of 430 billion dollars, making it one of the most valuable companies traded on Wall Street.
The S&P inclusion is a key positive for the Tesla stock, which has been challenged over the past month, falling by 5%, analysts say.
"With the S&P add, the focus for the stock returns to executing on the growth plan," Credt Suisse pointed out in a note.
Tesla will replace a S&P 500 company to be named in a separate press release prior to the 21 December rebalancing effective date.
Copyright (c) 2020 CercleFinance.com. All rights reserved.