StarFoxisDown!
Well-Known Member
Do we, though?
Yes, Tesla has a high amount of shares held by insiders and we all know Elon isn't selling. Then you take the big time investors such as Ron Baron who have publicly stated where they think the stock will be valued. You have multiple parts of Wall St finally accepting that Tesla is fairly valued at 600/share and recognizing future potential. And you think institutional investors are going to completely fine offloading their shares at 600 or even 700/share? I don't........and it's not like they would only have to offload a small percentage of their shares for the math to work out to match the index fund buying. They would have to offload a lot of shares.
Which bring me round to my other point which is that I don't believe hedge funds have been able to front run nearly enough shares to get even remotely close to the 120 million shares needed by index funds. It would have required those same institutional investors that we're speculating might sell after inclusion around 600-700/share to have been willing to sell in the 450-600 range.