Shares of solar energy company Enphase (ENPH) - Get Report rose Thursday after it was announced that the firm will be added to the S&P 500 effective Thursday, Jan. 7, replacing Tiffany (TIF) - Get Report, which is being acquired by LVMH.
"The big message is that the S&P is starting to evolve to reflect what’s happening. You have markets recognizing that these companies matter -- that decarbonization is a real thing. It’s important. It has to happen," JMP Securities Joe Osha said, according to Bloomberg.
Shares of Enphase, which designs, manufactures and sells home energy solutions for the solar photovoltaic industry, rose 2.8% to $177.83 per share in morning trading on the Nasdaq Thursday. S&P Dow Jones Indices announced after the close on Wednesday that the company would be added to the S&P 500. Enphase shares have soared 562% over the past 12 months.
Tesla entered the index as its fifth-biggest stock with a weighting of 1.69% and a market value of around $650 billion, making it one of the largest weight additions to the S&P 500 in the last decade, according to S&P Dow Jones Indices.
Tesla gained inclusion to the benchmark after stringing together four consecutive quarters of profit -- no small feat in a car market that has been decimated by the global coronavirus pandemic -- and may be on track to meet its 2020 target of 500,000 car sales, a figure that would require fourth-quarter deliveries of 166,000, after solid sales from China, the world's biggest EV market.