Tesla Size Poses Unprecedented Challenges for S&P 500 Entry
- S&P Dow Jones will query investors on how to handle inclusion
- Addition of such large a company creates problems for funds
This article is for subscribers only.
It may take a bit of innovation to get Tesla Inc. shares into the world’s most-influential stock index.
At almost $390 billion in value and growing, Elon Musk’s company would be the biggest ever added to the benchmark. Pushing it all in at once would force index-tracking funds into serious contortions -- they’d need to sell upwards of $40 billion of stock in other constituents to make room. As a result, the index’s overseer, S&P Dow Jones Indices, is considering doing it in stages.