- S&P 500 Dow Jones Indices announced on Monday that Tesla will join the S&P 500 effective Monday, Dec. 21st.
- Tesla is one of the S&P 500's 10 most valuable companies.
- Tesla got cucked in September after it met criteria to be included in the index, but was not initially picked. Short sellers are about to get crushed, and electric vehicle names will run hot.
Tesla is finally in. No condom. No shorting.
Tesla shares spiked more than 13% in extended trading on the news, as chasers who were criticizing and doubting Tesla are now dumping their kids college money into the stock for their portfolios.
Elon's company has long been plenty valuable enough for the inclusion in the S&P 500 - the market cap minimum is $8.2 billion - but got nut punched out of line by Etsy. Yes, a company where you can buy cheap and "homemade" bracelets beat out Tesla for a spot in the index. They were snubbed out in September after they met the criteria but were just not picked. I wonder how big of a stick was up the committees butt, but nonetheless here we are.
Tesla recently reported its fifth consecutive quarter of profit on third-quarter revenue of $8.77 billion. The company also reported that it delivered 139,300 vehicles during the third quarter, an all time best. The inclusion makes Tesla the largest company to ever be added to the S&P 500, similarly, this is the largest load to ever be added to my boxer briefs.
This addition represents a historic milestone for Elon and friends, which has been in the limelight for criticism and praise in the past. In a Twitter conversation, Elon had revealed that Tesla was "about a month" away from bankruptcy during the run-up model 3 production from 2017 to mid-2019. The man simply does not lose.
The inclusion is cash money for Tesla bulls, but it's also a big win for the electric vehicle sector. I predict this momentum being carried out by other EV names like Fisker, Net Element, Nio and dare I say it: Nikola. The global electric vehicle market is valued at $162.34 billion, and it's projected to reach $802 billion by 2027. With the party just getting started, I think right now is the best time to be a player in the stock market. You know the drill: withdraw your life savings and buy those Tesla calls.
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