- 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.
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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.
Tesla on Tuesday fell 21%