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Tesla Will Join the S&P 500 on Dec. 21

Elon Musk's Tesla is set to join the S&P 500 prior to trading on Dec. 21. Tesla shares were up almost 14% after the announcement Monday.

Tesla Inc.  (TSLA) - Get Tesla Inc Report will join the S&P 500 prior to the open of trading on Dec. 21. The move comes months of anticipation that the innovative technology and automobile company would join the major stock index.

Tesla shares were up almost 14% in late trade Monday following the announcement. The stock edged down .10% in regular trade, closing at $408.09, while the Dow and S&P 500 set-closing records on positive news about Moderna's  (MRNA) - Get Moderna, Inc. Report COVID-19 vaccine candidate.

Tesla is set to become one of the most valuable companies in the S&P 500 once it's included later in December.

S&P Dow Jones Indices has not determined whether Tesla will be added all at once per its press release, where it explained, "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."

TheStreet's Tesla Daily with Rob Maurer speculated when Tesla would be added to the S&P 500 in early August. Maurer highlighted a few dates including ServiceNow's  (NOW) - Get ServiceNow, Inc. Report announcement of joining the major index this week a year ago.

The S&P Dow Jones Indices ultimately passed on Tesla's inclusion in the third quarter when it announced changes when trading opened on Sept.21. Shares of Tesla plunged on Sept. 8 after expectations it would join after four profitable quarterly earnings.

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The S&P 500 added online retailer Etsy ETSY, equipment manufacturer Teradyne  (TER) - Get Teradyne, Inc. Report, and pharmaceutical firm Catalent  (CTLT) - Get Catalent Inc Report instead of Tesla in early September.

The Model 3 carmaker announced another profitable quarter when it reported it beat estimates during its third-quarter results on Oct. 21. TheStreet's Eric Jhonsa broke down the seven key takeaways after Tesla reported its strong cash flows.

Jim Cramer reacted to Tesla's earnings by describing a technology company that "revolves around energy... that's clean... that produces cars."

Cramer spoke about Tesla on Mad Money on Oct. 22 and explained how Musk's company mirrors this unstoppable stock market.

Wedbush analyst Dan Ives remains neutral with Tesla shares with a $500 price target but has a bull case of $700. 

"We believe the sustained profitability trajectory as evidenced in the September quarter was the final straw that got Musk & Co. into the S&P 500 this time around despite all the noise around tax credit boosts on the Street," Ives stated after the S&P 500 inclusion news.