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
|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
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