Tesla Motors, Inc. (NASDAQ: TSLA), Etsy Inc. (NASDAQ: ETSY) – Analyst: S&P passed on Tesla as it ‘deeply overlaps’


Tesla Inc. (NASDAQ: TSLA) shares entered their worst day in history to open the week after their biggest loss on Thursday. Tesla shares fell more than 21% on Tuesday, including Tesla in the S&P 500 index, passing S & P’s index, a decision that has triggered mixed reactions from market analysts.

On Wednesday, Data Trek Research co-founder Nicholas Colas said he was very surprised to see Tesla the S&P.

“The S&P 500 committee’s decision to not include Tesla yet in the index is still as brave a step as you’ll ever see with this group.” This can only come from a collective and committed view that TSLA is deeply prevalent and sits on Shakir Fundamental compared to its mega market cap, ”Kolas wrote in Datatrack’s daily newspaper.

Profitability in question: GLJ research analyst Gordon Johnson said earlier this week there were several good reasons why S&P did not add Tesla. In particular, Johnson questioned Tesla’s valuation, the quality of Tesla’s earnings and demand outlook for its vehicles.

“In the last 26 quarters, in only 4 of those quarters, TSLA has shown positive net income, excluding one-time credit sales (these one-time earnings are in line with TSLA, and physical form as a bulk of car manufacturers ), Now limiting the need for EVs to purchase credit from TSLA), Johnson wrote.

Kolas also cited Tesla’s heavy reliance on regulatory credit sales as a potential red flag for S&P, which requires all SAP and 500 components to be profitable on a GAAP basis.

GLJ has a Sell rating and $ 19 price target for Tesla.

Eighty Vs. Tesla: Chairman of Seabreeze Partners and Tesla short seller Doug Kass spoke about choosing S&P Etsy Inc. (NASDAQ: ETSY) is also asking Tesla to be included in the S&P 500.

“[The] The Faceless S&P committee that could care less about anything (price, valuation, fundamentals) not only deemed TSLA ineligible, they deemed TSLA so inept that ETSY, a totake broker with 1,200 employees, was ahead of them. Reached, ”Kas said this week.

Take of Benzing: The S&P selection committee may be pulling its heels, including Tesla, on the expectation that the stock’s valuation will return to Earth at some point, possibly reducing risk and the volatility associated with adding the stock to the index Will do. Meanwhile, the committee may justify delays due to concerns in which Kolas and Johnson spoke about the profitability of Tesla’s main auto business without the sale of regulatory credits.

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Latest rating for TSLA

The date strong Work From Service
Soldier 2020 Oppenheimer Maintains Outperform
Soldier 2020 Bank of america Repeats Neutral
Soldier 2020 RBC Capital Maintains Poor performance

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