Tesla stocks fall after stocks are not added to the S&P 500

After showing profitability for the fourth consecutive quarter, many people Tesla Inc (Nasdaq: TSLA) Will be added to the S&P 500; after reaching this milestone, electric vehicle manufacturers qualify for entry into the U.S. Top 500 Companies Index.

After the S&P 500 was added Etsy Inc. (Nasdaq: ETSY), Teradyne Inc (Nasdaq: anger) And Catalent (NYSE: CTLT) On Friday evening, shares fell due to the absence of the Tesla announcement. Eligibility does not automatically add the company to the index, as the committee makes the final decision on which stocks to add each month.

Wedbush analyst Dan said, “Based on all the indicators that Tesla is likely to enter the S&P 500 club this time, it’s considered a nearly consensual move, and will already have a negative knee jerk investor reaction accordingly on the white knuckle tape.” Ives wrote on the note.

“The profitability indicators and forecasts are likely to have been the shaky factors that might have ruled out Tesla this time. In short, Tesla’s failure to enter the S&P 500 is the bull’s de facto lockdown, given that all parameters have been met. Will be the head.”

Ives has a neutral rating on Tesla and is one of the company’s vocal analysts.

Benzinga’s take: Many have assumed that Tesla will be added to the S&P 500 index. The company is currently one of the top 10 largest companies in the United States by market capitalization. It won’t affect day-to-day operations, but the stock price will fall. Tesla’s share price fell 6.3% per share to $392 in the after-hours session on Friday.

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