Palo Alto’s Tesla excluded from latest inclusion in S&P 500; Etsy granted access

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Palo Alto’s Tesla excluded from latest inclusion in S&P 500; Etsy granted access

In a massive blow to Tesla investors who had been expecting the e-vehicle industry trailblazer Tesla Inc. would be included into the home of corporate tycoons S&P 500 as early as by September this year, S&P Dow Jones indices had excluded the world’s largest automaker by market cap, an shocking move what analysts were widely contemplated as utterly contentious.

Adding further muscles at their dubious move to exclude Tesla Inc. from S&P 500, the $4.4 trillion S&P Dow Jones Indices had added a group of small-cap companies into S&P 500 including online retailer Etsy, market valuation of which had been less than a 20th of Tesla’s, eventually leading to a 7 per cent decline in Tesla Inc.

shares’ prices on Friday’s after-market trading. Besides, in a statement released late on Friday, S&P Dow Jones Indices had been quoted saying that it would be adding the NY-based online craft seller Etsy, pharmaceutical company Catalent and chipmaker Teradyne into the benchmark Standard & Poor 500 accountable for roughly 45 per cent of entire trading activities in the Wall St.

Followed by the announcement, shares’ prices of Etsy climbed 6 per cent, Teradyne gained 2 per cent and Catalent added 2 per cent on Friday’s after-market trading. Etsy, Teradyne and Catalent have a combined market cap of $40 billion to date, roughly a seventh of Tesla Inc.’s current market cap of $270 billion.

NY online retailer Etsy gets into S&P 500; Tesla does not

In point of fact, latest wicked move from S&P Dow Jones Indices came against the backdrop of a broad-based expectation from Tesla investors who had been anticipating that the e-vehicle maker would be included into S&P 500 following its blockbuster second-quarterly earnings’ result in July.

However, short-sellers had been betting around $24 billion that the Tesla Inc. stocks, the most-beloved and the most-hated Nasdaq component that torrented over 400 per cent this year, would fall in a near-term outlook, marking up the biggest short-sell position against any US company on record.

Meanwhile, as the policymakers of S&P Dow Jones Indices had declined to comment on why the Wall St.’s most profitable stock that remained more valuable than 95 per cent of S&P 500’s existing components such as J&J and Procter & Gamble, had not been included into the house of Wall St.

legends, a senior analyst at S&P Dow Jones Indices Howard Silverblatt said following the announcement, “The market is continuously changing, and we need to reflect that in our indices.