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Tesla Shares Fall After Stock Was Not Added To The S&P 500

TSLA) would be added to the S&P 500. After hitting this milestone, the electric vehicle maker qualified for entry into the index of the United State’s 500 largest companies.

ETSY), Teradyne Inc (NASDAQ: TER) and Catalent (NYSE: CTLT) on Friday evening, the lack of a Tesla announcement sent shares sinking. Meeting qualifications does not automatically mean a company will be added to the index, as a committee makes the final decision on which stocks to add each month.

“It was viewed as almost a consensus move based on all the metrics that Tesla was likely to get into the S&P 500 club this time around and thus will have a negative knee jerk investor reaction accordingly in an already white knuckle tape,” Wedbush analyst Dan Ives wrote in a note.

“The profitability metrics and forecast likely was the swaying factor that might have excluded Tesla this time around. In a nutshell Tesla not getting into the S&P 500 will be a head scratcher to the bulls that viewed this as virtually a lock given all the parameters met.”

Ives has a Neutral rating on Tesla and is one of the company’s more vocal analysts.

2 Problems Tesla Creates For The S&P 500” data-reactid=”30″>2 Problems Tesla Creates For The S&P 500

Latest Ratings for TSLA

Date Firm Action From To
Sep 2020 Oppenheimer Maintains Outperform
Sep 2020 Bank of America Reiterates Neutral
Sep 2020 RBC Capital Maintains Underperform

View the Latest Analyst Ratings” data-reactid=”35″>View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

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