TSLA Surges After S&P Announces It Will Add Automaker At Full Float

TSLA Surges After S&P Announces It Will Add Automaker At Full Float Tyler Durden Mon, 11/30/2020 - 17:31 Leave it to Tesla army of momentum-chasing fanatics to send the stock surging not once but twice on S&P inclusion news. Two weeks after TSLA hit an all time high after S&P unexpectedly announced that it would include the EV maker in the S&P on December 21, moments ago - in an anticipated announcement - S&P Dow Jones Indices said it has determined that it will add Tesla to the S&P 500 at its full float-adjusted market capitalization weight effective prior to the open of trading on December 21. Ahead of the determination, S&P considered the expected liquidity of Tesla and the market’s ability to accommodate significant trading volumes. In the end it picked the simplest solution: basically absorbing the entire company in one go. S&P also said that after the market close on December 11, pro-forma files will be distributed, and a press release will be published announcing which company Tesla will replace in the S&P 500. Considering that the S&P inclusion is expected to result in some $11 billion in mandatory purchases it is safe to say that TSLA has gotten more than a fair share of upside, with the stock surging by $200 since the S&P announcement, an addition of more than $200 billion to its insane market cap. What's better is that after surging on Nov 16, the stock spiked some more for good measure after today's announcement - as if it was a surprise - with the stock up 5% after the close, or adding an additional $20BN in market cap on the exact same news. Because efficient "markets."
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