Exploring Potential S&P 500 Inclusion for Tesla

How will Tesla be impacted if it is added to the massive S&P 500 index?
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If Tesla  (TSLA) - Get Tesla Inc Report is able to post a second quarter profit when they report earnings later today, the company will become eligible to be added to the S&P 500 index. With $4.6T in assets under management tracking the index, 26 million shares of TSLA stock may need to be purchased by index-tracking funds.

The included video discusses the intricacies of a possible inclusion. Subjects discussed include:

  • Timing
  • Weighting
  • Benchmarking
  • Synthetic positions
  • Derivative positions
  • Selection committee's role

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Thumbnail Musk image credit to insidermonkey.com

Stock footage provided by Videvo, downloaded from www.videvo.net

Disclosure: Rob Maurer is long TSLA stock & derivatives