A quick video to update you on Tesla’s Addition to the S&P500 Index. It has been announced that Tesla – The electric car maker is going to be added to the S&P 500 index next month, This was announced after the market close and has pushed Tesla shares up 14 per cent in after-market trading.
The addition will take effect with the quarterly rebalancing on December 21st. This comes almost three months after TSLA first qualified to join the index. I made a video about the addition back then which you can watch at this link: https://youtu.be/P8qLUdYhGrc It explains how index adds and deletes work.
The most interesting part of this story is that S&P might have to break up the addition in order to prevent market distortion as Tesla may be too big to add all in one go.
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