(Bloomberg) – Tesla Inc. shares slipped into pre-market trading in the US on Tuesday after it missed joining the S&P 500 index, taking investors who had bet on its entry into the benchmark by surprise.
Tesla shares fell nearly 10% pre-market in the early days following Friday’s news. Instead of Elon Musk’s Tesla, the S&P Dow Jones Indices added online retailer ETC Inc., chip gear manufacturer Teradine Inc. and medical technology firm Catalant Inc.
Michael Dean, an analyst at Bloomberg Intelligence, said “regulatory emissions may be questions about the sustainability of credit sales that are currently reducing earnings”. “This may affect its failure to make in the S&P 500.”
The possibility of Tesla not being included reflects challenges in adding a firm of that size to the index, Credit Suisse analyst Dan Levy wrote in a note on Sept. 6. Levy said that Tesla still hopes to be added to the index.
Tesla has been an exceptionally performing company on the US stock market this year, rising 400% during Friday’s close – the second-best performance in the Nasdaq 100 index behind Zoom Video Communications Inc.
The carmaker reported its fourth-quarter profit for the fourth consecutive quarter in July, and its much-awaited “Battery Day” event, could also boost optimism later this month as many investors expect the company to be on that day. Will unveil new technologies.
Tesla shares entered the reform sector last week, following news of the company’s largest shareholder cutting Musk’s stake, as well as Tesla’s plan to slowly sell the market as $ 5 billion in shares Is digesting
(Updates with analyst comment in third paragraph.)
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