A novelty appeared on the S&P Global website yesterday, which must have pleased all Tesla’s bull investors. It states that the stock of Muska’s carmaker will become part of the S&P 500 index, which is considered the main benchmark and probably the best indicator of how the stock market is doing.
Reactions did not take hold and the title with the TSLA ticker, which will become part of the index on December 21 this year, jumped by about 13 percent after the end of regular trading hours.
It is not yet known who will replace him in the S&P 500. Just as it is not yet known whether Tesla will travel there due to its size at once or in two tranches. Let’s just add that with a market capitalization of more than $ 400 billion, Tesla will be among the top ten companies in the S&P 500.
Ultimately, the commission decided to be included in the index, but several formalities had to be met, such as the US headquarters, most public shares, at least one year since the IPO, or the positive (GAAP profitability) sum of the previous four quarters, including the current one.
Although Musk’s Twitter was unusually calm and focused on what’s going on in SpaceX, the financial corners of the Internet is perhaps the hottest topic.
Not only gamblers from Reddit are betting on further growth, which, in addition to the hype, could be caused by the simple fact that every mutual fund, ETF or, in short, anyone copying the S&P 500 will have to add Tesla to their horses, if they have not already done so.
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