# Tesla and S&P 500 listing **URL:** \ **Category:** In My Humble Opinion\ **Created:** [October 7, 2020, 11:56pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456 "2020-10-07T23:56:44Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [October 7, 2020, 11:56pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/1 "2020-10-07T23:56:45Z")
With Tesla on the verge of being listed, are you changing your position? So many index funds are going to have to buy, are their enough profit takers to sell , or will there be another run up on share price? ---
**Author:** ![dalej42](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@dalej42](https://boards.straightdope.com/u/dalej42)\ **Post date:** [October 8, 2020, 3:13am UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/2 "2020-10-08T03:13:29Z")
Everyone’s trading and aware of Tesla. Being added to an index won’t have any affect on its share price. It’s still way too volatile for me to trust in a swing trade much less anything longer term. ---
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [October 8, 2020, 6:03pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/3 "2020-10-08T18:03:09Z")
It is interesting that you think the share price will not change. At 277 billion, it would be one of the largest companies added. All the index fund managers will have buy shares. A huge change in demand will not affect its stock price? ---
**Author:** ![Jas09](https://avatars.discourse-cdn.com/v4/letter/j/d07c76/32.png) [@Jas09](https://boards.straightdope.com/u/Jas09)\ **Post date:** [October 8, 2020, 6:08pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/4 "2020-10-08T18:08:19Z")
You are only talking about the S&P 500 index. It’s already included in many other index funds. Also, shouldn’t it’s inevitable listing already be valued into the stock price? It’s pretty well-known information and I see no reason to believe investors haven’t priced that information in. ---
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [October 8, 2020, 11:18pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/5 "2020-10-08T23:18:28Z")
The problem is ,Tesla is so big, it will be 1 percent of the index. A lot of trading will have to take place for all the S&P 500 index funds to buy enough shares to obtain an index matching position. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [October 8, 2020, 11:28pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/6 "2020-10-08T23:28:44Z")
Nah. That’s not how it works. I’ve watched this kind of thing before most notably when former employer of mine was added when I worked there. The big houses already have plenty of Tesla stock that they can shuffle in. ---
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [October 8, 2020, 11:36pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/7 "2020-10-08T23:36:53Z")
Do the index funds have to sell other shares to get the money to give to the shifting company? ---
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [October 8, 2020, 11:51pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/8 "2020-10-08T23:51:34Z")
Still learning about the icons, did not mean to remove my post, can it be undone? ---
**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\ **Post date:** [October 9, 2020, 2:01pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/9 "2020-10-09T14:01:59Z")
reported post to moderators. ---
**Author:** ![What\_Exit](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/what_exit/32/10652_2.png) [@What\_Exit](https://boards.straightdope.com/u/What_Exit)\ **Post date:** [October 9, 2020, 3:00pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/10 "2020-10-09T15:00:27Z")
No problem, and thank you **kayaker**. ---
**Author:** ![dalej42](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@dalej42](https://boards.straightdope.com/u/dalej42)\ **Post date:** [October 9, 2020, 3:44pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/11 "2020-10-09T15:44:37Z")
I freely admit I don’t follow the indices composition much, often they don’t have to sell anything because they’re a merger or something that caused the number to go down. But yes, you’d expect selling of a booted company and buying of an added company, at least by SPY since they hold the actual underlying shares. Other index funds may replicate the index in other ways by not holding all 500 companies, but by using futures or derivatives. Again, I wouldn’t use being added to the S&P as a reason to make a decision to buy or trade TSLA. ---
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [October 9, 2020, 9:51pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/12 "2020-10-09T21:51:46Z")
Their price to earning ratio is crazy high. I agree it is not a buy stock. ---
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [October 9, 2020, 9:54pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/13 "2020-10-09T21:54:16Z")
> [@kayaker](#): > > reported post to moderators. Thanks for the assist. ---
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [November 19, 2020, 5:16pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/14 "2020-11-19T17:16:21Z")
$408 a share on Monday and $498 today. ---
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [November 29, 2020, 11:55pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/15 "2020-11-29T23:55:05Z")
$585 today. WSJ predicts 100 billion in trades from their inclusion in the S&P. ---
**Author:** ![D\_Anconia](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@D\_Anconia](https://boards.straightdope.com/u/D_Anconia)\ **Post date:** [December 2, 2020, 3:59am UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/16 "2020-12-02T03:59:20Z")
“The index company said Tesla will be added to the broad stock-market gauge before the start of trading Dec. 21, meaning most index-tracking funds that follow the S&P 500 will engage in a flurry of trading the Friday before.” " [More than $100 billion will be put into motion](https://www.wsj.com/articles/teslas-s-p-500-debut-is-set-to-put-100-billion-in-trades-in-motion-11606645801?mod=article_inline) in coming weeks as passive fund managers and some actively traded mutual funds all benchmarked to the S&P 500 adjust their portfolios to make room for it, traders and fund managers say." ---
**Author:** ![Jas09](https://avatars.discourse-cdn.com/v4/letter/j/d07c76/32.png) [@Jas09](https://boards.straightdope.com/u/Jas09)\ **Post date:** [December 3, 2020, 2:57pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/17 "2020-12-03T14:57:51Z")
> [@MrMrmrmr](#): > > I agree it is not a buy stock. > [@MrMrmrmr](#): > > $408 a share on Monday and $498 today. > [@MrMrmrmr](#): > > $585 today. Remind me not to go to you for stock tips! 😜 More seriously, this just shows that you can’t really predict these things unless you have specialized knowledge that the market-makers don’t have. I readily admit I don’t have that knowledge, so I just own the market, perhaps weighted to segments or factors that interest me (value/growth, large/mid/small). ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [December 3, 2020, 3:10pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/18 "2020-12-03T15:10:49Z")
By any conventional measure, the stock is way overvalued. ---
**Author:** ![asahi](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/asahi/32/8693_2.png) [@asahi](https://boards.straightdope.com/u/asahi)\ **Post date:** [December 3, 2020, 3:11pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/19 "2020-12-03T15:11:44Z")
I suspect now we will realize just how overvalued it is. ---
**Author:** ![MrMrmrmr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrmrmrmr/32/5828_2.png) [@MrMrmrmr](https://boards.straightdope.com/u/MrMrmrmr)\ **Post date:** [December 3, 2020, 4:51pm UTC](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456/20 "2020-12-03T16:51:06Z")
I should have said buy and hold. Buy and dump, sure. [Next page](https://boards.straightdope.com/t/tesla-and-s-p-500-listing/922456.md?page=2)