TESLA to be included in the S&P 500 index: The biggest addition in history

[sisterdonna]

Will be added on Dec 21 (Could be in 2 tranches)

News sent TESLA shares up 13 percent after hours

This addition could minimise the gap between S&P 500 and the Nasdaq index going forward (TESLA has gone up around 400 percent in 2020)

The company it replaces in the index will be revealed later

TESLA would have weightage of more than 1 percent in the index, directly making it into the top 10 stocks

Passive funds following the index will probably have a headache with the addition, having to trade $51 billion collectively

As always, the inclusion in the index could push prices up even higher, and index funds could be buying in at the peak

 

[strugglingsinner1]

@sisterdonna Unpopular opinion but I am not thrilled about this to be honest. I hope I am wrong but I feel Tesla is overvalued at the moment and is the Netflix of 2020. Not saying it will fail but I don't think it will generate as much profit over the long term if investing now.

 

[alivemary]

@strugglingsinner1

Unpopular opinion but I am not thrilled about this to be honest.

Not an unpopular opinion at all. Except for the young kids on Reddit who thinks of Elon Musk as the saviour of mankind, everyone thinks of Tesla as a meme stock that's waay overvalued.

 

[zackshikari]

@alivemary

meme stock

LOL, I will trying using this term this week.

 

[lliatia]

@alivemary Then who is keeping the price so high?
Definitely young kids of reddit can't do that

 

[darkcainz]

@alivemary I will be using this comment in the next Tesla discussion. Lol

 

[sisterdonna]

@strugglingsinner1 True. The EV market is still in its infancy. TESLA currently has a large slice of a small pie

As the market expands in the coming years, I expect traditional auto makers to catch up.

 

[resjudicata]

@sisterdonna They are already catching up, Mercedes has partnered with Nvidia for their self driving cars. Can't wait to see cars which can be overclocked lol

On performance's side the Taycan is a beast. Ofcourse the Roadster will destroy the Taycan.

Tesla has an early mover advantage which will stay there for years to come. Expect Musk to become the world's wealthiest man in the coming years.

 

[wisdomandlove]

@resjudicata

Expect Musk to become the world's wealthiest man in the coming years.

Ambani wants to chat with you

 

[resjudicata]

@wisdomandlove Sorry I don't chat with people who don't stick to their words.

Jio will have forever free outgoing

 

[alivemary]

@resjudicata

I don't chat with people who don't stick to their words.

Then, you won't be chatting with any human. Especially a businessman.

 

[resjudicata]

@alivemary lol maybe with the likes of Gates, Buffett, Son, Tata etc.

 

[resjudicata]

You don't know shit about Gates then

 

[resjudicata]

Why don't you enlighten me sir?

 

[resjudicata]

Gates did the same thing what Bezos is accused of and what Ambani is going to be accused of in future. Sell enterprise products to up and coming IT companies/banks at loss to make market and then predatory pricing.

 

[lliatia]

@wisdomandlove Jeff bezos likes this joke

 

[blacksmith3d]

@resjudicata Currently thing with spacex and tesla is that they have ability to go far ahead of their competitors. For example Bezo's blue origin is no where close to spacex even though it was founded before spacex

 

[resjudicata]

@blacksmith3d They are already miles ahead. But the thing is that the Germans are very very good at this game. Once they stop producing ICE vehicles, then the real game will begin.

SpaceX and Blue Origin have different visions. One wants to colonize mars and the other wants to explore space.

 

[kade]

@sisterdonna Unlikely. By the time they catch up, tesla would have evolved even furthur. Electric is the inevitable future and the stock market knows it. If things don't go south, Tesla will evolve as one of the most influential companies in history, like the General Electric of the 20th century.

A little overvaluation won't harm. And Netflix is no comparison to Tesla, it has too much competition.

 

[bark]

@kade adding to that all the cars on the road now is making there AI driven self driving better, each turn each manover will make its machine learning driving better.

clever architectuer not relying on LIDAR (which is crazy expensive) mostly use computer vision.

Battery day initiatives driving cost down by vertical integration

future prospects of getting $25K car ,Self driven Taxis will be huge.

I see company is properly valued to undervalued.

There are lot of markets they want to enter,Futher cost cutting if thier cars are developed in third world countries( now mostly in USA and China )