According to S&P Global, Tesla will be joining the S&P 500 Index, effective December 21. Elon Musk‘s electric vehicle and clean energy company based in Palo Alto, California has become a household name and now holds a market cap of nearly $387 billion USD. Additionally, Tesla reported its largest quarterly profit to date with $874 million USD in earnings in the third quarter.
S&P Global notes that Tesla will be replacing an undisclosed S&P 500 company and that it is considering if the company should be added all at once or in two separate tranches.
The S&P 500 is a stock market index that measures the stock performance of 500 large companies listed on the Stock Exchange in the United States and is one of the most commonly followed equity indices. To be eligible to join the index, a company must be based in the U.S., have a market capitalization of at least $8.2 billion USD, be highly liquid, have 50 percent of its shares available to the public and be positive in its recent quarter’s earnings and the sum of its last four quarters.
In case you missed it, Travis Scott’s McDonald’s action figure is now reselling for $55K USD.