Tesla Shares Fall After S&P 500 Snub
The recent surge higher in Tesla (NASDAQ: TSLA) shares was attributed, in part, to anticipation that the electric-vehicle maker would soon be added to the S&P 500 Index. But the new list is out, and Tesla isn't on it. This caused Tesla shares to fall 7% in Friday's after-hours trading.
After markets closed on Friday, index manager S&P Dow Jones Indices announced Etsy (NASDAQ: ETSY), Teradyne (NASDAQ: TER), and Catalent (NYSE: CTLT) would be added, effective Sept. 21. Inclusion in the index is a mark of prestige and can lead to shares trading higher, as funds that track the S&P 500 are required to add the new stocks to their portfolios.
Image source: Tesla.
Source Fool.com
