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The S&P 500 index is set to welcome Tesla Inc., which was founded by the mercurial Elon Musk back in 2003, to its list of components.
Tesla stock spiked during the extended session, which builds atop its 387% gain this year and the annual high recorded in August. An impressive feat for a company that only became profitable last year; as per its annual report back in January 2020.
The S&P Dow Jones Index announced just this Monday that the clean energy and electric vehicle company will be added to its list of components on prior to the markets opening on December 21, which meets the December quarterly rebalancing effective date.
Moreover, S&P DJI stated that Tesla will be among the biggest weight additions to S&P 500, a market-capitalization-weighted index, within the last 10 years. Consequently, S&P DJI sees Tesla generating one of the largest funding trades in S&P 500’s history.
Q3 of 2020, which saw a 105% rise in Tesla share prices compared 2019 Q3, marks the fifth straight profitable quarter for the Palo Alto-based company. The recorded $0.76 per share in this year’s 3rd quarter blew the $0.57-cent estimate out of the water, which aligns with the reported total revenue of 8.77 billion – a 39% climb – outperforming the $8.36 forecast.
Analysts expects the electric-vehicle manufacturer to continue down this road of profitability for the rest of the year; posting its first straight year of profitability.
The stock’s recent advance, in part, can be attributed to the anticipation of the company getting listed on the index. This inclusion may lead investors that mirror the S&P 500 index to add shares of Tesla to their portfolios; a potential catalyst for the Tesla’s stock.
As per Thomson One Financial’s tracking, Elon Musk stands as Tesla’s largest individual shareholder. Behind him is Larry Ellison, Oracle’s CEO.
Musk maintains his position as the head of Tesla while simultaneously commandeering the tunneling and underground-transportation systems company, The Boring Company, and SpaceX, which, in collaboration with NASA, had a successful launch last Sunday.
? Enter the Crew Dragon. At 4:48 p.m. EST (9:48 p.m. UTC), the NASA @SpaceX Crew-1 astronauts give you a LIVE tour of their spacecraft Resilience: https://t.co/z1RgZwQkWS pic.twitter.com/0kn4gRnFma
— NASA (@NASA) November 16, 2020
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