Tesla Starts the Week With 3% Gain Ahead of S&P Index Decision

tesla

(Bloomberg)

Tesla Inc. shares look set for a day of brisk trading on Monday ahead of a decision from the S&P Dow Jones Indices on how it plans to add the electric vehicle company to its benchmark.

Tesla’s $555 billion market cap poses a challenge for addition into the index, prompting the S&P to request feedback from the financial community on whether to include the stock all at once on Dec. 21 or break it into two days for the first time in its history.

S&P representatives didn’t immediately return a request for comment.

The company’s impending entry to the group of 500 companies has led to a buying frenzy in its stock and on those of other upstart electric vehicle makers, leading to a 44% jump in the company’s share price since Nov. 16 when the decision was announced. Tesla shares rose nearly 2.7% in premarket trading on Monday.

The company also won Chinese approval to start selling its Shanghai-assembled Model Y SUVs in the country, a development that can further lift shares.

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