S&P Dow Jones Indices announced after the market closed on Monday that Tesla will be officially included in the S&P 500 Index before the U.S. stock market opens on December 21. Due to the large volume of stocks included, S&P Dow Jones Indices is Seeking public opinion - whether to include it once and for all or in two stages. After being included, Tesla will replace another component stock, and the name of the replaced component stock will be notified separately.

Spurred by this news, the company’s stock price rose more than 13% to $463 after the market closed. Consistent with fourth quarter rebalancing actions.

S&P Dow Jones Indices said: “Tesla will become one of the largest additions to the S&P 500 Index in the past decade, and will therefore become one of the largest capital transactions in the history of the S&P 500. ”

Fund managers will have to sell about $51 billion worth of current holdings in the S&P 500 and use the funds to buy Tesla shares in order to make their investments, according to S&P Dow Jones Indices The portfolio correctly reflects the S&P 500 Index. Based on Tesla's most recent market capitalization of $386.8 billion, Tesla would account for approximately 1.01% of the S&P 500.

In July this year, Tesla achieved four consecutive quarters of profitability, which means that the biggest obstacle to being included in the S&P 500 Index has been cleared. At that time, the market expected that Tesla would be included in the S&P 500 Index. However, in September S&P Dow Jones Indices announced a group of new stocks to be added to the S&P 500, and Tesla was not among them.

Tesla CEO Musk’s personal wealth surged by more than $15 billion to $117.5 billion after the close, making him surpass Zuckerberg and become the world’s third-richest person on the Bloomberg Billionaires Index Rich man.

So far this year, Musk’s net worth has increased by US$90 billion, making him the fastest growing among the world’s 500 richest people.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.