Tesla – still not part of the S&P 500

This will be fun to watch when it happens.

Tesla’s market cap is $US277 billion, it’s one of the largest companies in the U.S. yet it isn’t part of the S&P 500Index yet.

“The keepers of that list, S&P Dow Jones Indices, have a rule that new companies must have been profitable in their most recent quarter and over the past year before being added. With its latest earnings, Tesla just crossed that line.

At current prices of Tesla and other stocks, managers of passive funds will have to sell about $US35 billion to $US40 billion of shares in the rest of the index’s companies to make a hole big enough to fit purchases of Tesla shares”

https://www.afr.com/markets/equity-markets/what-will-happen-when-tesla-hits-the-s-and-p-500-20200804-p55ieh