Elon Musk's Tesla joining the S&P 500

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Tesla, founded by billionaire Elon Musk, is joining the S&P 500, a milestone for the electric car maker which struggled for years to turn a profit.

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Shares jumped in the extended session building on the 387% gain already this year.

TickerSecurityLastChangeChange %
TSLATESLA INC.408.09-0.41-0.10%

On Monday S&P DJI announced that the automaker will be added to what is considered the broadest measure of the U.S. stock market, "prior to the open of trading on Monday, December 21 to coincide with the December quarterly rebalancing effective date."

Additionally, S&P DJI noted that "based on recent market capitalization figures, Tesla will be one of the largest weight additions to the S&P 500 in the last decade, and consequently will generate one of the largest funding trades in S&P 500 history."

The stock has advanced this year, in part on anticipation the inclusion was near, still, investors who mirror the benchmark index will likely need to boost or add shares of the company to their portfolios, a potential catalyst for the stock.

Musk is the largest individual shareholder, followed by Oracle CEO Larry Ellison.

Musk is coming off the successful SpaceX-NASA launch on Sunday, the space company he also oversees, along with The Boring Company, which is tunneling underground transportation systems.

Late Monday, he was monitoring the rocket and the four astronauts as it makes its way to International Space Station.

This is a developing story.

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