Tesla 9th-Largest S&P Component, but 408th-Most Profitable
Tesla stock is skyrocketing on news that it will be added to the S&P 500 on December 21st. As of right now, $TSLA is up 13% after-hours. But where will Tesla stand when it’s added to the S&P?
As of right now, Tesla would be the 9th-largest component of the index by market cap, if you account for its after-hours rise. It would be just behind Walmart and just ahead of Johnson & Johnson.
However, profit margin tells us a very different story. Tesla’s 2.28% net profit margin would put it in 410th, one of the last names still in the green. It would be just ahead of Pioneer Natural Resources and just below Mylan NV. Notably, it would be just behind Costco (ranked #408 now) and FedEx (#407).
Tesla is much more of a growth name than many of the companies currently in the S&P 500, but we will have to see if investors think there is enough growth potential left to justify Tesla’s astronomical P/E ratio.