Tesla joined the S&P 500 stock index in 2020.
S&P Dow Jones Indices announced Tesla’s addition in December 2020, with trading as a member beginning on December 21. The company entered the index after meeting requirements related to market capitalization, liquidity, public float, and profitability.
Tesla’s inclusion was notable because it followed a sharp rise in the company’s share price and several consecutive quarters of generally accepted accounting principles profitability. Because Tesla was one of the largest additions in the index’s history, index funds had to make substantial portfolio adjustments.
The move is distinct from Tesla’s 2010 initial public offering on the Nasdaq. Tesla had been publicly traded for a decade before joining the S&P 500, and its Nasdaq listing did not automatically guarantee entry into that index.