Automaker and industry leader Tesla has experienced a slump on its shares of about 15% during premarket trading Tuesday after getting snubbed in the latest inclusion of companies in the prestigious S&P 500 Index.
According to a report by Ryan Browne on CNBC, the decrease in its stocks came ahead of Tuesday’s trading day bell being rung. Browne shares that the S&P 500 Index Committee had decided to include three companies to the well-known list. These companies include Teradyne, Etsy, and Catalent, and unfortunately for the electric vehicle magnate did not make it off the cut.
Industry specialists and observers have assumed that Tesla will be able to have its company included in the exclusive roster, considering the stellar growth it has gone through in the past months. It even surpassed Japanese car manufacturer Toyota and cemented itself as the world’s most valuable automaker.
It is worth mentioning that the company has just done its new stock split scheme wherein experts declare that it doesn’t fundamentally change or influence how the company’s stocks would behave. Also, the CNBC writer shares, citing official regulatory documents, that Tesla was able to just recently completed the $5 billion sales of a fresh new set of stocks. They plan to sell more in the near future.
On other stock news, a handful of large technology companies including Amazon, Microsoft, Netflix, and even Tesla itself got billions of dollars’ worth of call options seen to have the potential to drive up their valuations. Reports cite it to be as the Japanese company SoftBank but as of press writing, company officials have decided not to provide any comments on the matter.