Tesla Motors Inc (NASDAQ:TSLA) will join the NASDAQ 100 next week to replace Oracle Corporation (NASDAQ:ORCL), which announced as part of its recent earnings report that it would move to the New York Stock Exchange. Tesla is the best-performing automotive stock so far this year, reports Bloomberg’s Alan Wong.
Tesla Added To NASDAQ 100 July 15
As of pre-market trading on July 15, Tesla will move to the NASDAQ 100 while Oracle moves to the New York Stock Exchange. The news was released on NASDAQ OMX Group, Inc. (NASDAQ:NDAQ)’s website early this morning. Oracle Corporation (NASDAQ:ORCL) is the largest company to make the leap from the NASDAQ to its competitor, the NYSE.
Tesla’s Place On The Index
The NASDAQ 100 tracks the largest companies trading on the exchange. Tesla Motors Inc (NASDAQ:TSLA) shares have more than tripled this year on a variety of news, including the company’s first profitable quarter in its history.
The fact that Tesla is joining the index means it could rise even higher because it will likely increase trading on the already popular stock. Many large funds and institutional investors follow the major indexes like the NASDAQ 100 when determining where to invest their funds.
NASDAQ data indicates that exchange-traded funds and other financial products which are linked to the NASDAQ 100 managed approximately $49.4 billion at the end of 2012. Also there were indications as early as last month that Tesla Motors Inc (NASDAQ:TSLA) was beginning to replace Apple Inc. (NASDAQ:AAPL) in some ETFs’ portfolios.
Tesla’s Stock Movement
Tesla Motors Inc (NASDAQ:TSLA) shares hit a new high on Monday after rising another 1.3 percent. In pre-market trading on Tuesday, the stock kept rising, likely on the news that Tesla Motors Inc (NASDAQ:TSLA) would be joining the index. The stock jumped as much as 3.4 percent in pre-market trading.
NASDAQ’s Loss Of Oracle
Oracle Corporation (NASDAQ:ORCL)’s decision to move to the NYSE means the exchange loses its fourth largest U.S. company. Oracle has been listed on the NASDAQ since 1986 when it had its initial public offering.
NASDAQ has managed to pull other companies away from the NYSE in recent years, including Texas Instruments Incorporated (NASDAQ:TXN) and Kraft Foods Group Inc (NASDAQ:KRFT).