Tesla shares rose significantly on Monday after the US market closed. More than nine percent to $ 446.71 is the value up. The reason for the price jump is the news that the stock will be included in the S&P 500 in December. Tesla will join the index ahead of the market opening on Monday, December 21. After that, Tesla will be one of the ten most valuable companies in the S&P 500 if you use today’s Monday’s closing prices.

Tesla failed in September. Although the company had already met the criteria for inclusion back then, Tesla was not selected by the S&P 500 index committee. Inclusion in the index is based on both quantitative and qualitative factors. Companies must be based in the US and listed on either the NYSE, Nasdaq, or Cboe. You must also have a market capitalization of more than $ 8.2 billion and four consecutive quarters of income under generally accepted accounting principles (GAAP).

Tesla recently even reported its fifth straight quarterly profit. In the third quarter of 2020, Tesla also had sales of $ 8.77 billion, exceeding market expectations. After the rally of Tesla shares in the past few months, the paper has now reached a market capitalization of nearly 400 billion dollars. As the research company, Baird has calculated, Tesla would be the largest company ever to be included in the S&P 500 index.

Adding Tesla isn’t an easy task, however, after the stock’s record run raised the company’s market valuation to over $ 380 billion. According to an analysis by the stock research firm Baird, it is the largest company ever to join the S&P.

Which shares for Tesla has to leave the S&P 500 will be announced at a later date.