- Tesla is on the verge of qualifying for inclusion in the S&P 500 index, one of the most popular stock indexes followed by investors, The Wall Street Journal first reported on Monday.
- The last criterion that Tesla needs to fulfill to be considered for inclusion is profitability.
- The sum of its previous four quarters of net income must be positive, with the most recent quarter also showing positive net income.
- Tesla reported a profit in the past three quarters, and one more quarter of positive net income for the electric-car manufacturer would solidify its eligibility for the index.
- The electric-car manufacturer still doesn’t meet the S&P’s positive-net-income requirement.
- To be eligible for inclusion in one of the most popular stock market indexes, a company needs to post a cumulative profit — as measured by generally accepted accounting principles — over its previous four quarters, with its most recent quarter also showing a profit.
Source: Market Insider