Tesla 'profoundly overvalued' amid exclusion from S&P 500, DataTrek says - Business Insider

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Tesla is 'profoundly overvalued' and its exclusion from the S&P 500 was a 'brave' decision made by the index committee, DataTrek says

exclusion from the S&P 500 index on Friday was a surprise to many given that the mega-cap electric vehicle manufacturer ticked off all the eligibility inclusion requirements.

But the decision of S&P Dow Jones Indices' index committee to exclude Tesla from the index despite it being eligible for inclusion was a "brave" decision, DataTrek co-founder Nicholas Colas said in a note on Wednesday. Tesla traded at a trailing 12-month price-earnings multiple of 913x on Wednesday, according to data from YCharts.com. Meanwhile, the S&P 500 traded at a trailing 12-month price-earnings multiple of 21.7x, according to JPMorgan.

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