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Tesla Won't Be Joining the S&P 500

Etsy, Teradyne, Catalent tapped to enter the benchmark index, but not Elon Musk's company.
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The S&P Dow Jones Indices announced changes to the S&P 500 index, effective at the open of trading Sept. 21. The addition list did not include Tesla  (TSLA) - Get Free Report, which was in the running to join the elite index. 

The S&P 500 index adds Etsy  (ETSY) - Get Free Report, equipment manufacturer Teradyne  (TER) - Get Free Report, and pharmaceutical firm Catalent  (CTLT) - Get Free Report. All three names had been previously included in the S&P MidCap 400. 

Tax services firm H&R Block  (HRB) - Get Free Report, beauty firm Coty  (COTY) - Get Free Report, and retailer Kohl's  (KSS) - Get Free Report will be deleted from the S&P 500 index, and moved to the MidCap 400 index. 

S&P Dow Jones Indices rebalances the index on a quarterly basis, adding new names and kicking others out. 

To be considered for the index, a company needs to meet certain benchmarks, including four consecutive quarters of profitability, but inclusion is ultimately up to the discretion of the S&P committee. 

After Tesla's last earnings report, in which it reported its fourth straight quarter of positive earnings, the carmaker became eligible for the index. 

Tesla shares plunged 7% in after hours trading on Friday after it was excluded from the rebalancing announcement. 

Tesla's stock has seen an incredible run-up year to date, with its valuation swelling to $390 billion as of Friday. 

The company recently enacted a 5-to-1 split of its stock, effective on Monday of this week. Tesla shares closed at $418.32 on Friday. 

On Wednesday, an SEC filing showed that Baillie Gifford, the largest outside shareholder in Tesla, cut its stake in the carmaker to less than 5% of Tesla, down from 6.32%, according to data from FactSet.