Tesla Is Now an S&P 500 Stock — Here's How to Get a Piece

What does this mean for you as an investor? Well, you now have a few more options if you want to hitch your wagon to Tesla’s ascent.

What does Tesla joining the S&P 500 mean?

The Standard & Poor's 500 Index tracks the stock performance of 500 of the largest companies in the United States. Tesla finally made the cut after a truly remarkable year.

The manufacturer enjoyed five consecutive profitable quarters, alongside increasing demand for electric vehicles, and its share price jumped more than 730% in 2020.

By this past weekend, Tesla stocks had reached an all-time high of $695 a share.

Its inclusion in the S&P 500 gives the often volatile Tesla stock a shot of credibility, as the index is considered a key benchmark for the U.S. economy.

And Tesla didn’t just sneak into the bottom of the list; the company opened with a 1.69% weighting in the index. The only companies with a larger weight? Apple, Microsoft, Amazon and Facebook. How’s that for impressive company?

How to easily invest in Tesla

So, who has an extra $700 laying around during this rollercoaster of a year? Don’t worry, there are several ways to invest in Tesla without buying a full share of your own.

The app Robinhood allows its users to buy tiny pieces of large companies like Tesla. These “fractional shares” allow you to invest with as little as $1. Best of all, Robinhood doesn’t charge any fees or commissions for basic trading.

Don’t want to put all your eggs in Elon Musk’s mechanized basket? Now that it’s part of the S&P 500, you can easily invest in the company as part of a diversified portfolio.

How to invest in the S&P 500