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Tesla set to join the S&P 500 Index in December

Tesla will join the S&P 500 Index, effective December 21, according to a Monday announcement from S&P Global.

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By
Jazmin Goodwin
, CNN Business
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.

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