(Reuters) – Tesla Inc will join the S&P 500 index in a single part, S&P Dow Jones Indices announced on Monday following a consultation with investors about the best way to add one of Wall Street’s most valuable companies.
Adding companies with extremely high stock market values to the S&P 500 is exceedingly rare, and S&P Dow Jones Indices has said that the inclusion of the electric-car maker will generate a massive amount of trading by index funds.
Tesla, which has a market value of over $555 billion, will join Wall Street’s benchmark index prior to the opening of trading on Dec. 21.
The company’s shares rose 5% in extended trade on Monday. They have surged about 40% since Nov. 16, when it was announced Tesla would join the index.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
