The company enters the benchmark with a 1.69% weighting, making it the S&P 500's fifth-largest constituent. Only Apple, Microsoft, Amazon, and Facebook will exert a larger influence on the index's day-to-day movements.
When counting both of Alphabet's share classes together, Tesla becomes the index's sixth-largest member. Tesla's entry in the S&P 500 follows a chaotic Friday trading session that saw shares whipsaw just minutes before markets closed. Frothy trading dragged shares 4.2% lower before a flurry of investors piling into the stock erased the loss and saw Tesla close 6% higher. Roughly 222 million shares changed hands on Friday, more than four times the stock's average daily volume.
Tesla's dip does little to dent its extraordinary rally through 2020. The automaker's shares stand more than 730% higher year-to-date, boosted by bullish analyst upgrades, strong demand from retail investors, and steady profitability. Tesla's membership in the S&P 500 won't impact the index's valuation very much, but its outsized volatility will have a "