⚡ An Electrically Charged S&P?
After much dillydallying, S&P Dow Jones Indices finally confirmed Tesla’s induction into the S&P 500
Hey Global Investor, here's what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Tuesday Close) 3,609.53 −17.38 (0.48%)
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USDINR (5 PM IST) 74.48 (1 Year +3.52%)
An Electrically Charged S&P?
After much dillydallying, S&P Dow Jones Indices finally confirmed Tesla’s induction into the S&P 500 slated for December 21.
Background: If Tesla were an athlete, it would have broken all records in its events this year. The company’s stock more than quadrupled this year, hit a 52-week high, split the stock, and delivered fourth straight profitable quarters. With the indomitable Elon Musk in charge, the company made a habit of beating investor expectations.
And yet, the company kept waiting to be invited to join the exclusive S&P 500, having met all the preconditions. US-based and listed on NYSE/NASDAQ/CBOE. Check. Market cap of at least $8.2B. Check. Four consecutive quarters of GAAP profit. Check. The S&P 500 Index committee passed on Tesla when announcing Q3 rebalancing actions shortly after Tesla reported Q2 numbers.
What Happened? So what did Tesla do? The company reported its fifth consecutive profitable quarter with revenue of $8.77B, delivered a record 139,900 vehicles in Q3, and forced the selection committee's hand and staked its claim for inclusion in the S&P 500 index.
And that’s exactly what happened.
The committee yesterday announced Tesla’s addition to the index effective December 21st, which also coincides with the S&P 500’s quarterly rebalance. The company is poised to enter the index as the world’s most valuable carmaker and as one of its ten most valuable companies.The company’s inclusion means Tesla will be the largest company ever to be added to the index. Because of the large size of the addition (the stock’s performance pushed Tesla’s market cap to over $380B), S&P will need to determine if Tesla should be added all at once or in two separate tranches on the rebalance effective date.
Market Reaction: Tesla stock is up around 390% YTD. The stock closed at $441.61 on Tuesday, up 8.21%. Tesla is up 3.08% before hours today.
Company Snapshot 📈
TSLA $441.61 +33.52 (+8.21%)
Analyst Rating (37 Ratings) BUY 32% HOLD 38% SELL 30%
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Later Today 🕒
6.00 PM IST: Housing starts (SAAR)
6.00 PM IST: Building permits (SAAR)
Before Market Open: Target Corp Earnings (TGT)
After Market Close: NVIDIA Corp Earnings (NVDA)
Fun Fact of The Day 🌞
Soap has been around for at least 4,800 years; ancient Egyptians used a substance that was similar to our modern soap.
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