Since S&P Dow Jones Indices announced that Tesla would be added to the S&P 500® on Dec. 21, 2020, many investors have contacted us asking when this transformative company will become a member of the S&P 500 ESG Index, the sustainable counterpart to the S&P 500.
The answer, in brief, is that Tesla will not automatically join the S&P 500 ESG Index upon its addition to the S&P 500. Instead, Tesla will be assessed during the next annual rebalance of the S&P 500 ESG Index, taking place at the end of April 2021. But even then, inclusion into the index is not assured. Whether Tesla becomes an index constituent will be determined by its sustainability performance across many criteria relative to its peers.
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