Adding Tesla is no easy feat after the stock’s record run pushed the company’s market cap above $380 billion, making it the largest company ever to be added to the SP, according to analysis from equity research firm Baird. The stock, which split 5 for 1 in August, has more than quadrupled in value in 2020.
There’s currently over $11.2 trillion in assets benchmarked to the SP 500, with roughly $4.6 trillion of the total in indexed funds, according to SP Dow Jones Indices.
“Due to the large size of the addition, SP 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,” SP said in a statement.
The addition represents a historic milestone for Musk and his electric car company, which has seen its fair share of ups and downs.
“This is another major feather in the cap for Tesla bulls joining the SP 500,” said Dan Ives, an analyst at research firm Wedbush Securities who has a neutral rating on the stock. “It speaks to the sustained profit trajectory that Tesla is now finally getting into this elusive club after much noise on the Street.”
CNBC’s Jennifer Elias contributed to this story.
WATCH: Tesla provides refunds to some Model S and Model X owners over touchscreen
