SP was in the mid 200s and sliding when split announcement came. Didn’t seem people were counting on S and P inclusion then. How much of this run is about the S and P? We are down from the mid 500s in premarket action.
I agree that the S and P entities are cognizant of the fact that they could become bagholders and are trying to mitigate it by delaying and waiting for the impatient traders to move on. But this is not the first time they have to deal with this issue. It would not be the first time they got to hold the bag either (eg yhoo). Granted, previous inclusions were not for such a large MC, and in this way it is unprecedented.
They could wait another quarter on the basis that they need to see ‘real’ earnings as opposed to the ‘fake’ ones we have seen because of credits. But won’t they have even worse issues then?
Anyone paying attention can see huge cash flows being generated by TSLA going forward, assuming the global economy does not collapse. Starting, I believe, with the quarter we are in right now.
Obviously a tough call for the S and P, but either you are an index representative of the market or you are not. Refusing to include TSLA has different consequences, yet consequences they are.
It might be ridiculous to say that the giants that are the S and P have something to lose here, but what exactly do you do and say when in a few short years there is a trillion dollar homegrown US company out there that is not in your index?
TSLA will be in the S and P. The idea that the S and P can at this point sneak TSLA in when no one is paying attention is laughable. It is bite the bullet time for them. Pick a day and do it.