Tesla's share price rockets after admission to S&P 500
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Tesla’s share price has resumed its wild ride after S&P confirmed that they will be admitting the company to their index, saying:
“On November 16, 2020, S&P DJI announced that TSLA will be added to the S&P 500 effective prior to the open of trading on Monday, December 21 to coincide with the December quarterly rebalancing effective date.”
Tesla was snubbed the last quarter, after meeting their criteria of 4 profitable quarters, but it seemed to maintain the performance for a 5th was enough to convince the index holders that Tesla was worthy of inclusion.
It is likely that the move will massively expand demand for Tesla’s already hot shares, as index-driven buyers are forced to automatically purchase their shares.
Tesla is currently the world’s most valued car company, and the news has already led to Tesla’s shares running up more than 14% in after-hours trading, with the shape of the graph suggesting Tesla is very likely to beat its $500 record from earlier this year.
via Electrek
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