S&P's decision on Tesla slated for after the close - MarketWatch

S&P Dow Jones Indices will reveal how it will add Tesla Inc. to its benchmark S&P 500 index after the stock market closes on Monday.

Whether Tesla TSLA, -3.10% will be added all at once or in tranches will be known at 5:15 p.m. Eastern, an S&P Dow Jones Indices spokesperson confirmed.

Tesla is set to join the S&P at the start of trading on Dec. 21. Underscoring the complexity of adding the Silicon Valley car maker, valued at more than $551 billion, to the S&P 500 SPX, -0.46%, the index manager sought feedback from investors to determine how Tesla should be added.

Most investors believe that it will be added in tranches.

Joining the benchmark index for U.S. equities puts Tesla stock in the portfolios of countless index-tracking funds, cascading to the many managed funds that would have to add Tesla to their holdings to balance their portfolios.

Tesla will replace an S&P 500 company to be named later, as it gets closer to the rebalancing, S&P Dow Jones Indices has said.

The car maker is by far the largest company to be added to the benchmark index.

The pending S&P inclusion was the latest boost to the stock, sending its market cap soaring above $600 billion from a January valuation around $100 billion.

The shares have gained 594% this year, compared with gains around 11% for the S&P.

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