Elon Musk with his mouth open: Elon Musk. AP Photo/Susan Walsh


© AP Photo/Susan Walsh
Elon Musk. AP Photo/Susan Walsh

  • Tesla’s exclusion from the S&P 500 index on Friday was a “brave” decision by the index committee, DataTrek said in a note on Wednesday.
  • The note said that the exclusion of the mega-cap electric-vehicle manufacturer surprised DataTrek’s cofounder Nicholas Colas and that the committee’s decision could have come only from a collective view that Tesla is “profoundly overvalued.”
  • Relative to its peak market cap of $465 billion, Tesla “sits on shakier fundamentals,” likely contributing to the committee’s decision to exclude Tesla, the note said.
  • Tesla traded at a trailing 12-month price-earnings multiple of 913x on Wednesday, according to data from YCharts.com.
  • Visit Business Insider’s homepage for more stories.

Tesla’s exclusion from the S&P 500 index on Friday was a surprise to many, given that the mega-cap electric-vehicle manufacturer ticked off all the eligibility requirements.

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Tesla on Tuesday fell 21%

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