Tesla Finally Joins the S&P 500

Morning Star | Nov 19, 2020 at 1:00 AM
  • Bon Mots The news that Tesla (TSLA) will soon be entering the S&P 500 left me triply entertained.
  • As indicated by the chart, most of the growth in the Top 10’s influence comes from strong performance from index leaders Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOGL), and Facebook (FB), rather than from the addition of Tesla.
  • This column is couched with warnings: The possibility exists that what has occurred will reverse, thereby delivering losses to S&P 500 investors, even as most of their holdings appreciate.