The long-awaited addition of Tesla Inc TSLA shares to the S&P 500 will take place on Dec. 21. After deciding how to add one of the largest companies in the market to the S&P 500 Index, investors have more details.
What To Know: The S&P 500 will add Tesla shares at full float-adjusted market cap weight.
The move comes along with the S&P quarterly rebalance, which will happen on Dec. 18. The company Tesla is replacing in the index will be announced on Dec. 11.
Related Link: Tesla Gets China Go Ahead To Sell Shanghai Made Model Y EVs
Why It’s Important: The large size of the addition led the S&P 500 Down Jones Indices to consider adding shares of Tesla in two separate tranches, which had never been done before.
The move will take effect prior to the open of trading on Dec. 21, to coincide with the December quarterly rebalance. The addition is expected to create challenges due to its size as the largest company to ever join the index.
Price Action: Shares of Tesla closed Monday down 3% to $567.60. Shares are 4% higher in after-hours trading, hitting $590.09 at the time of writing.
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