17-year-old upstart carmaker firm Tesla Inc will be entering the S&P 500 in December, the company announced on 16 November 2020.
With a market capitalisation of more than US$380 billion, the electric vehicle giant is one of the most valuable companies on the Wall Street.
Tesla would make the 10th biggest S&P 500 component, followed by Johnson & Johnson.
The company fulfilled all the requirements for eligibility that is four straight quarters of profitability. After Tesla registered its Q2 results in July and when the S&P Dow Jones Indices took up the index’s components in September, Tesla Inc was finally able to make it to the index.
Meanwhile, the share price of Tesla went up around 13.4% during the after-hours trading at 7:27 PM EST on November 16, 2020.