Tesla shares will enter the S&P 500 in one tranche

Tesla Shares Going To S&P 500 in one tranche

Investing.com — Electric car maker Tesla with a market value of $ 538 billion will be included in the S index&P 500 in one go — December 21, writes Bloomberg.

Initially, it was assumed that the securities of Elon Musk could enter the index in two parts. «In its solution S&P DJI took into account the wide range of feedback it received, as well as the expected liquidity of Tesla stock and the market's ability to handle trading volumes on that date.», — indicated in the S statement&P Dow Jones Indices.

Report S&DJI also says that Tesla's inclusion in S&The P 500 will force index funds to buy $ 73 billion worth of securities. Musk's organization is already the sixth largest company in the US by market capitalization. It will be the most expensive addition in the history of S&P 500 — its weight will exceed 1% of the total index.

Which company Tesla will replace in the S index&P, investors will know on December 11.

Tesla shares are up more than 4% since the close of trading on Monday. In total, the company's quotes have risen in price by about 580% this year.

The text was prepared by Yana Shebalina

— In preparation, materials from Bloomberg were used.