S&P 500 adds Tesla, sending stock price soaring
by Timothy B. Lee from Ars Technica - All content on (#5AGDN)
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Tesla will finally be added to the S&P 500 Index, the committee responsible for the index announced after markets closed on Monday. The change will take effect on December 21.
Tesla's stock price jumped 13 percent in after-hours trading on Monday. As I write this just before noon on Tuesday, Tesla's stock has given back some of those gains and is up about 7 percent from Monday's close.
People have trillions of dollars in index funds that track the S&P 500 index. This means that when a stock is added to the S&P 500, fund managers have to add it to their portfolios, pushing up the stock price.
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