FANG - With Tesla taking a (sizable) space in S&P 500 who will get bumped?
Now that Tesla (TSLA) has made the (S&P 500) grade, which of the 500 names in the index might get edged out to make room? The electric automaker will be joining by Dec. 21, either in one or two pieces due to its sheer size: worth $387B, now approaching $440B if today's after-hours action is realized (it's +13.2% now postmarket). That makes it the largest company ever to be added to the S&P 500, Baird says. But S&P Dow Jones Indexes says it won't name the company it's replacing until closer to that date. Tesla long ago easily met the valuation minimum to get included as a new entry ($8.2B), but given there are qualitative factors in the Index Committee's thinking, Tesla was snubbed at the last quarterly rebalance, which sent shares lower, after speculation it would get in. And the Index Committee keeps its analysis factors close to the
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With Tesla taking a (sizable) space in S&P 500, who will get bumped?