On Friday, The S&P Dow Jones announced that the S&P 500 has added three new stocks and removed three others. Tesla (TSLA. US), which was once highly anticipated by the market, was not included in the list of newly added stocks. The adjustment will take effect from the opening of the US stock market on September 21st.
The newly included list includes pharmaceutical supplier Catalent (CTLT. US), handmade goods e-commerce Etsy (Etsy. US), and automated testing equipment supplier Teruida (TER. US).
The three companies that were excluded are tax service company H&R Block (HRB. US), cosmetics group COTY. US, and department store KSS. US.
This time, Tesla was not included in the S&P 500 constituent stocks. After the company announced its second quarter results on July 23, its stock price continued to rise, with a cumulative increase of over 30%. At that time, investors believed that the company had been profitable for four consecutive quarters and met the key conditions for inclusion in the S&P 500, so they speculated on the stock based on the expectation of being included in the S&P 500.
At that time, Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, had stated before Tesla announced its results that even if a company met both market capitalization and profitability criteria, as well as other regulations, there was still no guarantee that it would be included in the index.
He said, “The purpose of the S&P 500 index is to emulate the common market in the United States. Companies included in the index must comply with a series of algorithms that represent the market, liquidity, and size
Due to not being included in the S&P 500, Tesla’s stock price plummeted 6.29% after hours to $392. The stock fell 8.6% at one point during the trading session, hitting a low of $372.05. It rebounded 5.2% in the late trading session, reaching a high of $428, and closed up 2.8% at $418.32.
The S&P hot topic has been hyped for over a month, but this good news has failed. Tesla’s next hot topic is Battery Day on September 22nd Analysts suggest buying at a bottom price of $290 per share.
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