Tesla shares slumped in US pre-market trading on Tuesday after the electric vehicle maker missed out on being included in the S&P 500 Index, taking investors who had bet on its entry to the benchmark by surprise.
Tesla shares fell about 10% pre-market in the first day of trading since Friday’s news. Instead of Elon Musk’s Tesla, S&P Dow Jones Indices added online retailer Etsy, chip gear maker Teradyne and medical technology firm Catalent.
Tesla not being included likely reflects the challenges in adding a firm of that size to the index, Credit Suisse analyst Dan Levy wrote in a note on 6 September. Levy added that Tesla is still expected to be added to the index, however.
Tesla’s shares have surged 400% so far this year, making it the second best performing stock in the Nasdaq 100 Index, behind Zoom Video Communications. The car maker reported its fourth quarterly profit in a row in July. — Reported by Kit Rees, (c) 2020 Bloomberg LP