Stocks of electric vehicle company Tesla (TSLA) enjoyed a stark 10% rise during after-hours trading on Monday, leading to the company’s inclusion in the S&P 500 index.
According to an announcement by the S&P Dow Jones Indices, Tesla will join the S&P 500 on Monday evening before the stock market reopens the following day. The addition will be made in time to coincide with the December quarterly rebalance.
The Dow Jones S&P Indices included the following explanation as part of its announcement: “Due to the large size of the addition, S&P Dow Jones Indices is seeking feedback through a consultation to the investment community to determine if Tesla should be added all at once on the rebalance effective date or in two separate tranches ending on the rebalance effective date.”
In order to have been considered for inclusion on this closely-watched index, Tesla had to meet a range of strict conditions. This includes at least an $8.2 billion market cap, a high level of liquidity, and positive figures for its latest quarterly earnings as well as the four quarters leading up to it.
