It's totally crazy that Tesla gets included with real companies. It's a meme stock with a 323.88 price to earnings ratio. It has no business being in the S&P 500 and should quite frankly be delisted.
https://www.ft.com/content/59adbe42-ca30-47f3-9cda-5415945e9...
15 days of price discovery for SpaceX instead of 1 year for inclusion into indexes. Will be one of the largest wealth transfers from common people to the wealthy since it'll exploit all passive investments to provide exit liquidity for elon and his investors.
I am not the first person to say this, but I guess I took a lot of what he said at face value because I don't really know anything about physics or rockets beyond a high school level. Then he started saying stuff about computers that were "slightly off" at best, and since I know a lot more about computers it made me realize he was kind of full of shit.
I mean we have a president who has almost never even completed an entire sentence, but he tells you how smart he is all the time and people just believe it.
S&P500 inclusion is a simple math calculation based on market cap. By definition, Tesla must be included until its value drops far enough to exclude it. That will probably never happen short of an apocalyptic event.
That said, I agree that TSLA easily meets the criteria for inclusion -- even if you assume a normal automaker P/E of ~5 instead of TSLA's meme-stock ~330.