Tesla (TSLA) fans, no need to dismay over the company being snubbed by the S&P 500 index committee just yet – hope isn’t lost for the electric vehicle (EV) giant’s inclusion.
As reported by Reuters, Tesla could still be included in the S&P 500, especially with any merger activity, which is historically what causes most companies to leave the index. If companies currently included on the index merge with outside companies and leave the index, this would open room for Tesla to be included, and the move could happen at any time.
In case y’all forgot with this whole S&P roller coaster. Tesla shares are currently at $2000 pre-split which represents an amazing 700% run over the last 12 months. Holding until …… forever. #Tesla
— Pascal Bruijn (@PascalBruijn) September 14, 2020
While Tesla’s exclusion from the S&P Index did seem to harm the EV companies shares last week, causing an almost 15% drop in investments, the company has already begun to bounce back, with multiple experts now claiming that this isn’t the end for Tesla’s run.
Tim Ghriskey, Inverness Counsel chief investment strategist, told reporters, “It will go into the S&P. There’s no way it cannot at some point.” He continued, “Maybe it’s in the penalty box right now while they just assess the situation.”
In spite of the exclusion, Tesla is expected by most to someday be added to the index. And with Battery Day coming up later this month and the Cybertruck on its way early next year, CEO Elon Musk and the rest of the company don’t seem particularly concerned about the snub.
Zach is a writer, musician, and EV enthusiast, currently residing in Santa Rosa, Ca. Loves his wife, his cat Banks, and a good cup of coffee.