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There Are Two Teslas, Says Jim Cramer

Jim Cramer explains why he thinks that there are two Teslas, plus he's got some advice for Robinhood investors eyeing Tesla.

Tesla will not be included in the list being added to the S&P 500 index, despite expectations that four consecutive quarters of positive earnings would make it a shoo-in.

The S&P Dow Jones Indices announced changes to its venerable bellwether index after the closing bell on Friday that did not include the electric car and battery maker

S&P Dow Jones Indices rebalances its indexes on a quarterly basis. A company needs to meet certain benchmarks to be considered, including four consecutive quarters of profitability - something Tesla accomplished after its most recent earnings report but still didn't satisfy the S&P committee that makes the calls.

While the electric carmaker reported its fourth quarterly profit in July and its much-hyped “Battery Day” event has also boosted investor optimism, at least some of the wind behind Tesla's tail lights has been the potential for S&P 500 inclusion itself - a move that would automatically force exchange-traded funds and other index-tracking funds to buy Tesla stock, boosting the shares further.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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