Tesla Inc.’s market value topped $500 billion on Tuesday, setting the Silicon Valley electric-car maker on track to become the seventh largest company in the S&P 500 index once it is added to the benchmark in mid-December.
See also: Elon Musk is now world’s second-richest person, as net worth has grown more than $100 billion this year Underscoring the complexity of adding the heavyweight to the benchmark, S&P Dow Jones Indices took an unusual step, saying that it would consult with investors whether it would add Tesla in separate tranches or all at once.Tesla’s addition to the broader, premier benchmark for U.S. equities, automatically will put the shares in the portfolios of countless index-tracking funds, cascading on to the many managed funds that would have to follow suit to balance their holdings.
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