Tesla has skyrocketed 8.21% on Wall Street after announcing that it will be part of the S&P 500 from December 21.
The company currently has a higher valuation than Toyota, Disney or Coca-Cola, with a market capitalization of 387,000 million dollars.
"The entrance of Tesla will mean one of the heaviest inclusions in the S&P 500 in the past decade"S&P Dow Jones Indices said in a note.
Joining the index means that mutual funds indexed to the S&P 500 will have to sell about $ 51 billion in shares of companies already in the S&P 500 and use that money to buy Tesla stock, so that their portfolios correctly reflect the index, according to the S&P Dow Jones Indices. Tesla will represent about 1% of the index.
To qualify for the S&P 500, a company must be headquartered in the United States, achieve a market capitalization of at least $ 8.2 billion, be highly liquid and have at least 50% of its shares available to the public. Last quarter earnings and the sum of earnings for the last four consecutive quarters should also be positive.
In October, Tesla reported its biggest quarterly profit to date, earning 874 million dollars in the third quarter, excluding extraordinary items, which raised its revenues by 156% compared to the same quarter a year ago, and marking the fifth consecutive quarter of growth for the company.