Msci Inc (NYSE:MSCI) has announced that it is adding Tesla Motors Inc (NASDAQ:TSLA) to the MSCI World Index, starting August 30. This is an important milestone for the relatively young automaker because it brings it to the world stage.
Shares of Tesla Motors Inc (NASDAQ:TSLA) have been falling steadily over the last week or so, dropping from more than $150 per share to just under $140 per share. Today the stock stabilized though, ending the day up .22 percent. There’s no doubt debate about this stock’s worth will continue on Wall Street as bulls and bears fight about what its share price should be.
The importance of the MSCI World Index
The MSCI World Index is an important benchmark used to examine how the global stock market is doing, so being added to it is a major milestone for any company, especially one with so few years of profitability on public record. According to Msci Inc (NYSE:MSCI)’s site, the index covers 24 developed market countries and 85 percent of “the free float-adjusted market capitalization in each country.” The company reviews each of its indexes quarterly to make adjustments as needed.
Other additions to the MSCI World Index
In addition to Tesla Motors Inc (NASDAQ:TSLA), MSCI also made one other addition to its World Index. The company is also adding Michael Kors Holdings Ltd (NYSE:KORS) to the index.
Tesla on the NASDAQ 100
Last month it was announced that Tesla Motors Inc (NASDAQ:TSLA) would join the NASDAQ 100, another key benchmark index many investors look at. Some funds even base their portfolios on indexes like the NASDAQ 100. Of course there’s been speculation that the automaker might land on the S&P 500 one day, but it will probably be awhile before the company’s financial situation is up to the level that’s virtually required of companies before they are added to the S&P 500 index.