Tesla Falls After Stock Sales And S&P500 Rejection
As says Investing catalyst for the liquidation is largely Tesla shares, which plunged more than 13% after saying it completed the sale of $ 5 billion in common stock on Friday.
The stock price was also under pressure with Standard & Poor’s announcement on Friday that it would not be listed on the S&P 500 index for the time being. The announcement disappointed hopes that the passively managed money tracking the S&P 500 would be forced to buy the shares of Elon Musk's company to fulfill its investment mandates.
If Tesla opens at its current level, it would be about 25% below its historical record at the beginning of the month, but still about 30% above where it was when the wave of speculation about the inclusion of the S&P 500 started.
The stock price was also under pressure with Standard & Poor’s announcement on Friday that it would not be listed on the S&P 500 index for the time being. The announcement disappointed hopes that the passively managed money tracking the S&P 500 would be forced to buy the shares of Elon Musk's company to fulfill its investment mandates.
If Tesla opens at its current level, it would be about 25% below its historical record at the beginning of the month, but still about 30% above where it was when the wave of speculation about the inclusion of the S&P 500 started.
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