Tesla (TSLA) has had an impressive year, though it is no longer dominating the day-to-day market like it was just a few short weeks ago.
On Tuesday morning, Tesla shares fell significantly after Tesla was left out of the S&P 500 index, as reported by CNBC.
Though Tesla’s stock had great success throughout the year and into Q3, recent weeks have left its stock to stagnate, and ultimately begin falling from its previous highs.
Tesla stock when I hold no shares: 📈
Tesla stock after I invest: 📉
— Anam (@avohra33) September 3, 2020
Friday, the S&P 500 committee deliberated about additions to the list. Many speculated that Tesla would be added to the index this quarter due to its rampant success throughout the year. While Tesla was surprisingly not included, Etsy, Teradyne, and Catalent were added in its place.
Following the news, Tesla stock decreased more than 7%, just before markets closed for Labor Day on Monday.
Tesla split its stock 5-to-1 at the end of August, leading to a short-lived stock increase that would fall again a few days later, due to its largest shareholder, Ballie Gifford, cutting its stake in the company entirely.
Tesla also sold $5 billion USD in common stock on Friday, a move that experts are divided about as to whether it will be a benefit or detriment to the company in the long-run.
At the time of writing, Tesla’s stock is worth $355.80, down 14.95% from yesterday.
