Three new companies added to the S&P 500, and Tesla wasn’t one of them

With four straight quarters of profitability and a meteoric rise in share prices over the last year, many were expecting, and predicting, Tesla would soon be added to the S&P 500.

On Friday, the committee that decides which companies are part of the prominent stock market index made some changes, and unfortunately Tesla was not part of them.

With the shuffle, three new companies were added, only one of which you’ve probably heard of – Catalent Inc., Teradyne Inc., and ETSY.

Many Wall Street analysts had been predicting Tesla’s inclusion into the S&P 500, with Wedbush analyst Dan Ives saying earlier this year “inclusion is now likely a done deal.” When reached for comment on the exclusion Friday by MarketWatch, Ives was at a loss for why the automaker didn’t make it in.

This was a bit of a shocker and the Street assumed this was a foregone conclusion. Tesla not getting into the S&P 500 club is a head scratcher and the stock will likely be down for the indexing implications.

Tesla shares (TSLA) fell sharply in after-hours trading following the announcement, down nearly 7% at the time of publication.

This is a developing story, stay tuned for updates.

Tesla shares Sept 4 2020

Legal Disclaimer – Darryn holds shares of Tesla, Inc. (TSLA) and has no plans to change any positions within 72 hours.

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