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Tesla shares rise on hopes stock will join the S&P 500 benchmark, unleashing new investor money

Tesla parcels rose after Macquarie estimated the electric automaker may qualify to juxtapose the benchmark S&P 500 index as early as the second quarter of 2019.

“TSLA restrictions off all the boxes for inclusion except aggregate GAAP profitability over draw 12 months; we forecast this box to be checked in 2Q19,” Macquarie analyst Maynard Um commanded in a note Thursday.

The company’s third quarter saw it report a surprise profit, as CEO Elon Musk constructed good on his promise to start turning regular profits in the last half of the year.

“While TSLA stillness has to prove it can sustain profitability, we believe the company will achieve this at eligibility requirement,” Um said.

To be eligible for inclusion, Standard & Poor’s needs companies to be profitable for four consecutive quarters on a GAAP basis.

Numberless than $3 trillion in funds are tracking the S&P 500 directly via factor funds, according to Standard & Poor’s website.

Tesla shares finished Thursday trading up 0.9 percent following the note.

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