S&P Leaves Tesla at the Altar.

  • Thread starter Thread starter marshall
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My guess is that the S&P committee wants to see Tesla make a profit without the credits before letting them in the S&P 500.

It will be interesting to see how the upcoming stock sale goes.
 
marshall said:
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It will be interesting to see how the upcoming stock sale goes.
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My speculation this is a dynamic stock offering where Tesla sets the top price to prevent spikes. A steady price, buffered by Tesla, is poison to SHORTs. The complement would be a dynamic stock purchase program. By using Tesla assets to add or buy-back stock, the volatile prices that fed the SHORTs will evaporate.

Bob Wilson
 
My assumption is the S&P are looking for the share price to stabilize a bit more and profits to continue. I don't think they care about where the revenue comes from.

I suspect there's also concern about devaluation of every one else in the S&P500 once everyone rebalances to include Tesla.

I think Tesla are playing the game well. The stock split was a good decision to bring price stability. It in effect creates a new floor for the stock.
 
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