Cover It has been announced that Elon Musk's Tesla will be added to the S&P 500 stock index in December of this year (Photo: Getty Images)

The notorious electric car maker is set to be one of the top 10 companies in the S&P 500 index

Earlier this week S&P Dow Jones officially announced that Tesla will be added to the S&P 500 stock index on December 21 of this year. Helmed by Elon Musk, the industry leading electric vehicle maker is expected to be one of the top 10 companies in the benchmark index based on its current market value.

S&P Dow Jones Indices made the announcement after the closing bell on Monday with Tesla shares jumping nearly 14 per cent afterwards. The electric car manufacturer became eligible to join the S&P 500 stock index after sharing its fourth consecutive profit in the second quarter of the year—in fact, Tesla shares have leaped an eye-popping 387.8 per cent this year alone which is largely due to the coronavirus pandemic acting as an accelerator to the global transition to electric vehicles.

“Due to the large size of the addition, S&P Dow Jones Indices is seeking feedback through a consultation to the investment community to determine if Tesla should be added all at once on the rebalance effective date or in two separate tranches ending on the rebalance effective date,” the S&P Dow Jones Indices shared in a press release. “Tesla will replace a S&P 500 company to be named in a separate press release closer to the rebalance effective date.”

While the company has had considerable ups and losses since it was founded nearly two decades ago, today, the marque has a market value of US$400 billion—and with stocks valued at US$441.61 at market close, it’s set to be not only one of the top stocks in the index but the most valuable company to be added to the S&P 500 in over a decade.

See also: Maye Musk, Mother Of Tech Billionaire Elon Musk, On Modelling And Her New Book

© 2022 Tatler Asia Limited. All rights reserved.