Tesla stock is extremely volatile. It dropped 56% from the high in december, and is now trading at 40% below the all time high.
It has met all the criteria for removal (there are 20-30 changes every year, even profitable companies get removed) but obviously won’t be until Musk angers Trump enough for them to have the political cover to do it. When that happens, look out below.
But I think hedge funds are the real players here. Tesla is one of their successful investments. So placing even more bets there to keep numbers looking good is one possible play...
No. The big index funds fully replicate the index.
They will drop Tesla only if Tesla is dropped from the index.
Tesla is currently up by 1150% since 2019.