Elon Musk's Tesla joining the S&P 500

Tesla will go into the S&P 500 December 21, 2020

Tesla, founded by billionaire Elon Musk, is joining the S&P 500, a milestone for the electric car maker which struggled for years to turn a profit.

Continue Reading Below

TickerSecurityLastChangeChange %
TSLATESLA INC.555.38+33.53+6.43%

Shares jumped building on the 387% gain already this year hitting a yearly high in August.

On Monday S&P DJI announced that the automaker will be added to what is considered the broadest measure of the U.S. stock market, "prior to the open of trading on Monday, December 21 to coincide with the December quarterly rebalancing effective date."

TESLA POSTS RECORD RESULTS, ‘NEXT PHASE OF GROWTH’ IN FOCUS

Additionally, S&P DJI noted that "based on recent market capitalization figures, Tesla will be one of the largest weight additions to the S&P 500 in the last decade, and consequently will generate one of the largest funding trades in S&P 500 history."

The inclusion is lifting other electric vehicle stocks including Lordstown Motors and Nio.

TickerSecurityLastChangeChange %
RIDELORDSTOWN MOTORS27.37-1.23-4.30%
NIONIO INC.53.51-1.87-3.38%

Tesla turned its fifth straight quarterly profit last month jumping 105% from the year-ago period to $0.76 per share, ahead of the $0.57 cent estimate, while total revenues climbed 39% to $8.77 billion, above the $8.36 billion that was expected. Analysts expect the automaker to post its first straight

The stock has advanced this year, in part on anticipation the inclusion was near, still, investors who mirror the benchmark index will likely need to boost or add shares of the company to their portfolios, a potential catalyst for the stock.

ELON MUSK TALKS 'BOGUS' COVID-19 TESTS AHEAD OF SPACEX LAUNCH

Musk is the largest individual shareholder, followed by Oracle CEO Larry Ellison, as tracked by Thomson One Financial.

GET FOX BUSINESS ON THE GO BY CLICKING HERE 

Musk is coming off the successful SpaceX-NASA launch on Sunday, the space company he also oversees, along with The Boring Company, which is tunneling underground transportation systems.

Late Monday, he was monitoring the rocket and its four astronauts, as it makes its way to the International Space Station.

 CLICK HERE TO READ MORE ON FOX BUSINESS