Tesla May Qualify to Enter the S&P 500 Next Year, Macquarie Says
Tesla May Qualify to Enter the S&P 500 Next Year, Macquarie Says
(Bloomberg) -- Tesla may qualify to be included in the S&P 500 Index in the second quarter of next year, Macquarie analyst Maynard Um wrote in a note to clients. That is, if it manages to show sustained profitability over trailing 12 months.
The electric vehicle maker currently checks off all the boxes for inclusion in the index except aggregate GAAP profitability over the previous 12 months, the analyst said. He expects the company to hit that milestone in the second quarter.
Tesla Inc. reported its third ever quarterly profit last month, and reaffirmed its forecast for profit and positive free cash flow in the fourth quarter.
The company, which has had a tumultuous third quarter, especially after its CEO Elon Musk’s failed attempt to take the carmaker private, announced earlier today that independent director Robyn Denholm would succeed Musk as board chair.
To contact the reporter on this story: Esha Dey in New York at edey@bloomberg.net
To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Christiana Sciaudone
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