Tesla, according to S&P Global, is reported to be joining the S&P 500 Index starting Dec. 21st. The Palo Alto-based clean energy & electric car company headed by Elon Musk currently holds a market cap of $387 billion USD. In addition, Tesla’s largest quarterly profit, which was reported in Q3 was totaled at $874 million in earnings.
Sources note that Tesla, upon joining, will be the replacement of an unnamed S&P 500 company. Tesla is thinking over whether they want to be put in all at once, or in 2 separate portions.
The S&P 500 is an index of the stock market that measures and calculates the performance of 500 large companies that are listed on the U.S. Stock Exchange. It is also one of the most followed indexes. If a company wishes to join the index, they must be based in the United States, be highly liquid, have a market capitalization of $8.2 billion USD minimum, and have 50% of its shares available to the public and be in the positive in both its recent quarter earnings and in total for the previous 4 quarters.
Stay in the know with the latest culture news