Tesla will be added to the S&P 500 index on Dec. 21, according to AP. Based on its value, the electric car maker will be among the top 10 companies.
S&P Dow Jones Indices announced this development of Tesla after the closing bell. The shares of this company jumped 14% after several hours of trading. The electric car corporation earned the right to join S&P 50 after posting its fourth consecutive profitable quarter. Nonetheless, the company could not become an eligible option for the list in September.
The company shares have reached 387.8% this year as they got a fruitful year of profit after several losses in the past. Tesla now has a consistent profit source for them. They earned $331 million in the third quarter on revenue of $8.77 billion.
Elon Musk, the founder of this company, has led them from zero to the market valued at $386.83 billion. The electric car maker now also invested in the spacecraft industry and in the future, it could accompany NASA in this field.
Recently, Musk’s company struggled with U.S. regulations about camera failure, but instead of being held back, they accelerate and become a member of the S&P 500 list. The official announcement will come this upcoming Wednesday.
via AP