Elon Musk’s success final week restarting production at Tesla TSLA -0.52% Inc.’s lone U.S. manufacturing facility ends one drama however units up one other with a giant query: Can the automobile maker park itself within the S&P 500?
Becoming a member of the index would carry the status of belonging to the benchmark gauge of U.S. equities and drive index funds to race to incorporate the corporate’s shares of their holdings.
Inclusion within the S&P 500 requires an gathered revenue over 4 consecutive quarters. With Tesla’s revenue over its previous three quarters—its longest run of profitability—it might be able to be part of the influential index if it could defy Wall Avenue’s expectation and eke out one other this era.
The connection might assist clarify why Mr. Musk was so decided to reopen the plant, which had been idled since March 23 by native authorities making an attempt to stem the unfold of Covid-19, the illness brought on by the brand new coronavirus.