Tesla Motors Inc. will join the Nasdaq-100 Index next week, replacing Oracle Corp. which is shifting to the New York Stock Exchange. Tesla will be included to the index, which tracks the largest companies on Nasdaq, before the start of trading on July 15, 2013, according to Nasdaq OMX Group Inc. Oracle is so far the largest company to move between Nasdaq and NYSE.
Tesla's shares are considered the best-performing automotive stock in the world this year, as its value more than tripled so far. The surge in Tesla's share value is mainly attributed to the popularity of its Model S sedan that helped it post its first quarterly profit.
Being included in stock benchmarks has been enticing to public companies since it guarantees a shareholder base. Sandy Mehta, chief executive officer of Value Investment Principals Ltd., told Bloomberg that joining the index could be considered as a "coming of age," a recognition that a company has market cap and liquidity.
He remarked that once Tesla's stock joins the index, "you will have some buying." Tesla's shares closed Tuesday trading up $1.84 at $123.45 following the announcement. Tesla expects to sell 21,000 Model S this year, with deliveries to Europe and Asia to start in the second half.