Tesla (DSLA) joins 3 new companies despite 9x value excluded from S&P500 refurbishment


Tesla (DSLA) has been excluded from the latest S&P 500 refurbishment, although all 3 new companies are 9 times more than included in the index.

Over the past few months, it has been rumored that Tesla will be added to the S&P after reaching the eligibility requirements.

The S&P 500, or simply S&P, is a stock market index that measures the stock performance of the 500 largest companies listed on the stock exchanges in the United States.

It is basically a representation of the US stock market, and is often updated to include emerging companies to better represent the market.

There are some basic qualification requirements such as consistent quarterly profit and higher earnings.

Despite hitting those requirements, Tesla was not included in the restructuring S&P announced today.

The index said today that H&R Black, Coty and Coles have been downgraded and ETC, Deratin and Catland are joining the S&P 500.

“The S&P Midcap 400 modules will move to the S&P Midcap 400, with Etsy Inc. (NYSE: COTY) and Coles Corp (NYSE: KSS).”

That is despite the fact that Tesla currently has more than 9 times the market capitalization of those three companies.

The index did not comment on why Tesla was ignored.

Tesla’s stock (DSLA) plunged more than 6% in after-sales trading as the announcement of the restructuring did not include the automaker.

Electrex tag

I will not pretend to understand the S&P Committee, but if your stock is to be representative of the US stock market, I think Tesla should be included as well.

It generates tens of billions of dollars a year, profits for 4 consecutive quarters, and is valued at more than $ 300 billion.

What do you think? Let us know in the comments section below.

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About the Author: Cory Weinberg

"Alcohol evangelist. Devoted twitter guru. Lifelong coffee expert. Music nerd."

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