Tesla To Join S&P 500 As Its Largest Entrant Ever
The EV manufacturer will be added to the S&P 500 index on December 21st.
1. EV behemoth Tesla will be added to the S&P 500 stock index on December 21st, 2020.
2. Tesla stock jumped over 12% this morning on the news.
3. It will be the largest company to be added to the index ever, and should land among the top ten once officially added.
Tesla (Ticker: TSLA), the EV giant, will be added to the S&P 500 index on December 21st, the S&P Dow Jones Indices announced. Once added, the $446 stock (At the time of writing this) will likely be among the top ten largest companies included in the index. Oh and, if you're not familiar with the stock market, other automotive stocks such as Ford (Ticker: F) are a lot lower - like $440 less. Additionally, it will be the largest company to ever be added, a fact that was made clear when Tesla CEO Elon Musk tweeted "Tesla stock is too high imo".
This news sparked a 12.55% gain this morning, a figure of which has only fallen to 9.5% since. The stock won't be shooting up for ever though, it should settle down within the next few days or so, as most do on this type of announcement. To move back to where it will land in the index, somewhere around Johnson & Johnson and Procter & Gamble is likely.