Goldman Says Tesla Inclusion Won’t Make S&P 500 Much Pricier

Tesla Inc.’s entry into the S&P 500 Index next week won’t make the U.S. benchmark as expensive as investors might expect, Goldman Sachs Group Inc. says.

Although the electric carmaker’s eye-watering rally has pushed its shares near 170 times the consensus 2021 earnings estimate, its addition will only have a minimal impact on the benchmark’s valuations because of a nuance in index metric calculations, confounding the “instinctive conclusion” of many investors, Goldman strategists led by David J. Kostin wrote in a Dec. 16 note.