After showing a fourth straight quarter of profitability, many assumed Tesla Inc. (Nasdaq: TSLA) Will be added to the S&P 500. After hitting this milestone, the electric vehicle maker qualified for entry into the index of the 500 largest companies in the United States.
After adding S&P 500 Etsy Inc. (Nasdaq: ETSY), Teradine Inc. (Nasdaq: Mars) And Cat Lent (NYSE: CTLT) On Friday evening, shares sank due to Tesla’s lack of announcement. Meeting qualifications do not automatically mean that a company will be added to the index, as the committee makes the final decision on which shares should be added each month.
Wadebush analyst Dan said, “Based on all the metrics that Tetla is likely to enter the S&P 500 club this time around, it was seen as an almost unanimous move and so it would already be a knee-jerk investor reaction to the white copy tape.” Ives wrote in a note.
“Profitability metrics and forecasting prospects may have excluded Tesla at this time. In short, those bulls not coming into the Tesla S&P 500 will be a major scratcher who saw these parameters as a lock.”
Ives has a neutral rating on Tesla and is one of the company’s more vocal analysts.
Benzinga’s Law: Many assume Tesla will be added to the S&P 500 index. The company is currently in the U.S. based on its market cap. No. is one of the top 10 biggest. While it will not affect daily operations, it will hurt stock prices. Shares of Tesla fell 6.3% to 392 in the session after Friday’s hours.
‘Caution is not bearish’: analysts respond to tech stock plunge
Latest ratings for TSLA
|Sep 2020||Bank of America||Repeat||Neutral|
|Sep 2020||RBC Capital||Maintains||Underperform|
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