November 17, 2020: Increase in share purchase of electric car maker Tesla as S&P foundation announces adding Tesla to the S&P 500 list on December 21, 2020.

It is still not revealed which company Tesla will be replaced next month. The announcement will be in early December. Shares of the California-based company Tesla was trading at 13.4% in post-market trading and as of now, the share has increased 440% in the current financial year. The greater market size of Tesla made S&P add share in two segments will finish it by December 21.

“Taking a step back, this is a major feather in the cap for the Tesla bulls after much agonizing around not getting into the S&P 500 in early September,” “We believe the sustained profitability trajectory as evidenced in the September quarter was the final straw that got ‘Musk & Co.’ into the S&P 500 this time around despite all the noise around tax credit boosts on Wall Street,” said Wedbush analyst Dan Ives.

Listing in the S&P is a prestigious recognition for private companies and an achievement. The companies listed in the top 500 will have more attraction from the investors and the buyers to purchase the shares. Tesla went public in the year 2010 with a share value of $17 and, the current share value stands at $404.

The electric car manufacturer has gained more traction this year also, the success of the SpaceX mission is adding value to the companies owned by Elon Musk.