Electric carmaker Tesla, received a significant boost on Monday (November 16) after market. Dow Jones announced that it would be adding the company to its benchmark S&P 500 index of top rated companies. In after-hours trading on Monday the stock skyrocketed more than 13% as traders celebrated the long awaited news. The following day in regular market trading the stock closed sharply higher by 8.2%.  Tesla qualified for inclusion in September after reporting four straight quarters of profit, but investors had to wait until now for the index committee to give the go-ahead. Tesla will be officially added to the index on December 21st.

 

The company will come in as one of the most 10 valuable companies on the index and its current market capitalization is 8.2 billion dollars.

 

Tesla’s inclusion means that many investment funds that offer S&P500 funds are likely to buy Tesla (NASDAQ:TSLA) stock (and to sell a proportion of other stocks) to include in their portfolios from now until December 21st, potentially pushing Tesla’s stock price higher.

 

The move is another big victory for CEO Musk who continues to prove his critics wrong and gives the company the institutional respectability that its supporters have long sought.

 

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