Forgive my ignorance, but the 1.01% of the fund weight that S&P set out yesterday was based on Teslas marketcap at that time. If Tesla's marketcap goes up wouldn't that % increase up until the buy date meaning that $51B goes up as well?
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
Oookaaaayyyy....time for the Quiz of the Day:
Q: What is it that 40 women can produce in one week?
bkp_duke
Well-Known Member
That'll work: same as VW's immeasurable EVs.
bkp_duke
Well-Known Member
I didn't see a NIO thread, so for anyone that cares, NIO's Quarterly earnings report:
https://ir.nio.com/static-files/39d3112f-3cb4-4ed5-aade-b040b368719a
https://ir.nio.com/static-files/39d3112f-3cb4-4ed5-aade-b040b368719a
Looks like Nio is dragging Tsla down after hours..lol /s
lafrisbee
Active Member
the other huge obstacle would be training a workforce that large all at once.
Tes La Ferrari
Active Member
Tesla, Lucid, Rivian, and others join forces to create ZETA: a push for electric cars only by 2030 - Electrek
Tesla joins an EV lobbying group. Strength in numbers ?
The 28 founding members of ZETA are:
Tesla joins an EV lobbying group. Strength in numbers ?
The 28 founding members of ZETA are:
- ABB
- Albemarle Corporation
- Arrival
- ChargePoint
- ConEdison
- Copper Development Association, Inc.
- Duke Energy
- Edison International
- Enel X
- EVBox
- EVgo
- Ioneer
- Li-Cycle
- Lordstown Motors
- Lucid Motors
- Piedmont Lithium
- PG&E Corporation
- Proterra
- Redwood Materials
- Rivian
- Siemens
- Southern Company
- SRP
- Tesla
- Vistra
- Volta
- Uber
- WAVE
StealthP3D
Well-Known Member
The S&P Index Funds need to follow their own rules as disclosed in their prospectus. Deviating from that opens them up to lawsuits should they guess wrong about the direction of TSLA and thus under-perform the Index. In other words, it's not tenable for them to deviate from their prospectus.
That said, most index funds give themselves wide latitude in their prospectus to deviate from the index when they feel it would be beneficial to the performance of the fund. Index funds exhibit what's called "index tracking error" which is the deviation from the return of the actual index. For a variety of reasons, this is almost always negative. The fund manager's job is to minimize this tracking error without becoming too speculative. I know that Schwab's S&P 500 Index Fund allows them to buy in advance or buy late. They can even buy in anticipation of the announcement if they want.
For those reasons I would expect the index fund managers to lobby for the staged inclusion offered by S&P because it makes their job of tracking the actual Index easier (less risky) with no real downside.
I would caution those who plan to trade these events because there is no predictable way we can expect this play out except to say that it should provide a stronger "floor" to the share price than would otherwise exist. That does NOT mean it can't (for example) take a trip below $400. And it doesn't mean there won't be a squeeze. It's really impossible to predict.
The probable reason the Index Committee decided to offer a staged entry is because they had heard complaints from some fund managers that adding TSLA would be messy and make their job more difficult. This is their way of being responsive to the needs of these fund managers. Doing this over a much longer window than is typical gives fund managers a larger window with which to cost average and thus more flexibility. I suspect there may even be a timely dip in the share price to assist them.
I'm not planning to play this event other than continuing to hold although some will undoubtedly have big profits by guessing correctly and others will undoubtedly lose a lot of value. We will hear from the former group out of proportion to their numbers because the latter group tends to quietly lick their wounds.
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Hahaha your love affair with NIO continues. It is crazy how Tesla gets lumped together with any EV stock. Look on the bright side though. First it was Nikola which was cringe worthy and now NIO which does not have it’s own factory but has products lol. We are making progress!
Sometime at the S&P committee has a sense of humor. December 21st is the winter solstice, the shortest day of the year.
lafrisbee
Active Member
Elon is THE MAN!That's a trick question - no matter how many women you have working on it, you still need a man to make it happen.
Do you think I'm stupid?
/s
Artful Dodger
"Neko no me"
That's about the ASP from Tesla's $5B share offering announced on Sep 1st, 2020. Today TSLA was capped near that SP from 12:30 pm until 3:00 pm when shortzes jumped in for EoD.
Artful Dodger
"Neko no me"
Been saying this for a while now. Elone said eventually Giga Shanghai will be at 1M/yr production. Even if we get 300K Models 3 and 600K Models Y that's still a little less than a million. Rounding, or further production refinements? It'd take only 333K/line/yr for the 3 existing lines to get to 1M/yr.
But, if we look at the drone footage for the past several weeks, there does appear to be land clearing going on in the former watermelon field on the Eastern perimeter of GF3. There's roadwork to be sure, along with a new high capacity bridge over the canal, but could it be also another assembly hall? It makes sense to localize all production at the GF3 site since they can draw upon the existing bty, motor, and infrastructure resources.
Imma call it: Model 2 it is!
Cheers!
UkNorthampton
TSLA - 12+ startups in 1
UK to ban new ICE in 2030 and other gems - various news sources, but just noticed that Nasdaq leaked before embargo - Britain to ban new petrol cars and vans by 2030 on road to net zero emissions
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