Tesla loses US$80 bil in market value after exclusion from S&P 500 index

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Electric vehicle maker’s stock records its worst single-day percentage drop ever. FMTNews Tesla

LOS ANGELES: Tesla Inc shed about US$80 billion of its market value on Tuesday, an amount that overshadows the combined value of General Motors Co and Ford Motor Co, after its surprise exclusion from the S&P 500 index.

The stock closed 21.06% lower, while fellow electric automaker Nikola Corp jumped more than 40% after General Motors said it was acquiring an 11% stake in the company. In a surprise announcement, the S&P Dow Jones Indices decided to add online craft seller Etsy Inc, semiconductor equipment maker Teradyne Inc and pharmaceutical technology company Catalent Inc to the S&P 500 instead.

Bets against Tesla’s stock have also increased slightly over the last month, according to financial analytics firm S3 Partners.

 

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