Tesla dumped $5B worth of its stock in just 4 days — and traders hate it
Tesla stock is down 30% since its telling the SEC about its market sell-off
S&P steers clear of Tesla in its flagship index… for now
Some analysts connected Tesla’s September strife to its S&P snub, after Elon Musk’s wunderstock was noticeably left out of the flagship index of 500 top US companies, despite its technical eligibility.
[Read: These tech stocks still have a price above $1K — will they split?]
Speculators could’ve bought Tesla stock hoping it would rise further upon its eventual inclusion. The idea being that Wall Street’s biggest funds would be effectively forced into holding $TSLA, a reality anchored in the appeal of large index funds among institutional investors.
Throw in that supposed “Tesla rival” Nikola justsigned a dealworth billions to have old world marquee General Motors build its first car, and Tesla’s volatility appears a little sharper.
In any case, the real question here is how readily Tesla can shake off its market slump, as speculators try to figure out where to flock to next.
None of this is investment advice. Don’t pretend it is, because it’s not. Always do your own research.
Story byDavid Canellis
David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.
Get the TNW newsletter
Get the most important tech news in your inbox each week.
