This may blast off more tomorrow!
A fellow investor speculated that perhaps it was all the free publicity from yesterday's Model X shuttle ride to Launch Pad 39A, and Tesla's (TSLA) 5th consecutive profitable quarter that convinced the S&P committee to pull the trigger on their inclusion. Click here to see the post on the launch.
We do know that being added to the S&P 500 means that many funds (i.e. Fidelity 500 Index Fund, Schwab S&P 500 Index Fund, Vanguard 500 Index Fund, SPDR 500 ETF, and more) will need to accommodate for Tesla's addition and removal of another company from the index. A rally is likely to ensue on December 21st as this occurs. How much of a rally has yet to be seen as a lot has to do with whether the S&P committee decides to include Tesla in one or two tranches, and how much of any given index tracking fund is allocated towards Tesla shares. Either way, exciting times ahead for the company and investors.
Disclaimer: This post represents my own opinion and is not a substitute for professional investment advice. It does not represent a solicitation to buy or sell any security. Investors should conduct their own due diligence and consult their tax and financial advisors before making any investment.
Disclosure: I currently hold a position in TSLA with the intention of going Long.
I wrote this post myself, and it expresses my own opinions while sometimes quoting others. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.