After showing the fourth quarter of profitability, many Tesla Inc. (Nasdaq: TSLA) Will be added to the S&P 500. After hitting this milestone, the electric vehicle manufacturer qualified to enter the index of the 500 largest companies in the United States.
After adding the S&P 500 Etsy Inc. (Nasdaq: ETSY), Teradine Inc. (Nasdaq: TUE) And Catalyst (NYSE: CTLT) On Friday evening, shares plunged due to a lack of Tesla announcement. Conference qualifications are not automatically added to an organization index because a committee makes the final decision on which stocks to add each month.
“Based on all the criteria by which Tesla is likely to enter the S&P 500 club at this time, it is considered an almost unanimous move and there will already be a negative knee jerk investor reaction on the white fist tape,” Wedbush analyst Dan Yves wrote in a note.
“Profitability metrics and forecasts may exclude Tesla at this point. In short, Tesla’s non-entry into the S & P500 will be a head scratcher for the bulls, which are considered a virtual lock that meets all parameters.”
Eves has a neutral rating on Tesla and is one of the company’s voice analysts.
Take Benz: Many thought that Tesla would be included in the S&P 500 index. The company is currently one of the top 10 largest in the US based on market cap. While this does not affect day-to-day operations, it does hurt the share price. Tesla stock fell 6.3 percent to $ 392 a share in the session after Friday.
‘Be careful but not bearish’: Analysts respond to tech stock plunge
Latest ratings for TSLA
|September 2020||Bank of America||Reiterates||Neutral|
|September 2020||RBC Capital||Maintains||Low performance|
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