Tesla set to join the S&P 500 Index in December
Posted November 16, 2020 6:24 p.m. EST
CNN — Tesla will join the S&P 500 Index, effective December 21, according to a Monday announcement from S&P Global.
Tesla, which is now worth more than Toyota, Disney and Coke, exceeds the value of almost every company in the S&P 500.
To be eligible to join the S&P 500, a company must be based in the United States, have a market capitalization of at least $8.2 billion, be highly liquid, and have at least 50% of its shares available to the public. Its most recent quarter's earnings and the sum of its trailing four consecutive quarters' earnings must be positive, as well.
There are over $11.2 trillion in assets benchmarked to the S&P 500, according to S&P Global, including $4.6 trillion of the total in indexed funds.
Tesla will replace an S&P 500 company, information about which S&P Global says will be released at a later date.
"Clearly this is a key positive for shares and indexing purposes and ultimately removes another question mark around the Tesla story going forward," Wedbush analysts Daniel Ives and Strecker Backe wrote in a note to clients.
Tesla shares were up more than 10% upon the news, according to Refinitiv.
-- CNN's Annalyn Kurtz and Clare Duffy contributed to this report.