Tesla (Nasdaq: TSLA) will be joining the S&P 500 index, expanding its investor base and putting the electric car maker in the same company as market behemoths such as Alphabet, Amazon.com, Apple, and Microsoft.
The announcement, made Monday afternoon by the S&P Dow Jones Indices, sent the company’s shares 13.7% higher in after-market trading. Tesla will officially join the benchmark stock index before the market opens on December 21, the index stated.
When Tesla joins the S&P 500, it will be one of the most valuable companies on the benchmark index. The weighting will be so influential that the S&P is debating whether or not to add the stock at its full market capitalization weight all at once, or in two separate tranches.
