Tesla Inc. (NASDAQ: TSLA) will be added to the S&P 500 index after months and months of speculation.
This move will take effect before the opening of trading on December 21, 2020, to coincide with the quarterly rebalance of the quarter.
“Due to the large size of the add-on, S&P Dow Jones Indices is seeking feedback by consulting with the investment community to determine whether Tesla should be added at once on the effective date of the rebalance or in two separate tranches ending on the effective date. Tesla’s rebalance force will replace S&P 500, which will be mentioned in a separate press release closer to the rebalance̵
See also: Analyst: S&P switches to Tesla because it is “highly overpriced”
Tesla shares have been huge in the last year. Part of that bull was the hope that the shares would be added to the S&P 500 in 2020. The shares actually fell in early September after Tesla was transferred.
Tesla will be added to the index as a consumer discretionary stock.
Tesla shares traded 10% in the session after business hours on Monday. Shares closed at $ 408.09.
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