Tesla, the best performing automotive stock in the world so far this year, fill replace Oracle Corp. in the Nasdaq-100 Index next week.
Tesla will join the Nasdaq-100 Index, which tracks the 100 largest non-financial companies that are listed on the Nasdaq. The electric automaker will be added to the index by July 15th, replacing Oracle, which last week announced it is moving to the New York Stock Exchange. Shares of Tesla have more than tripled so far this year in New York, thanks to high demand for the Model S sedan which helped the automaker turn profitable for the first time in the first quarter.
“It’s a coming of age, recognition that a company has market cap and liquidity,” said Sandy Mehta, chief executive officer of Value Investment Principals Ltd. in Hong Kong. “Once the stock joins the index, you will have some buying.”
Before the announcement, Tesla’s stock increased 1.3% to a record $121,61 on July 8th. Tesla CEO Elon Musk expects the Model S to sell 21,000 units by the end of this year, as deliveries to Asia and Europe will start during the second half. The Model S, priced $69,900 in the U.S., is the automaker’s second model after the $109,000 Roadster.