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Is that a bad thing? Tesla's consumer base is not large or diverse enough to be representative of the national economy or population.
by 256lie 6y ago
Is that a bad thing? Tesla's consumer base is not large or diverse enough to be representative of the national economy or population.
- gostsamo 6y agoFanboys excluded, it is bad for those who've speculated on a demand if the company is included in the index.
- tankenmate 6y agoBut those are the joys of day trading; increased risk.
- christophilus 6y agoInclusion in the S&P doesn’t always indicate a big upside. I recently heard a podcast that suggested the opposite. If TSLA’s rise was based on such speculation, it deserves to fall.
- michaelhoffman 6y agoIt's bad for Tesla shareholders. Doesn't mean it's bad for anyone else.
- doopy-loopy2 6y agoIt's a bad look on the SP500 if Tesla continues its rise and shareholders of the SP misses out on gains because of this "committee decision".
- itsoktocry 6y ago>It's a bad look on the SP500 if Tesla continues its rise It's a bad look if TSLA crashes and takes people's retirements funds down with it because of this "committee decision".
- doopy-loopy2 6y agoNot if it's algorithmic. The issue is that you have a committee making arbitrary decisions.
- skohan 6y agoWhat about a committee making informed decisions based on their area of expertise?
- nickik 6y agoTesla sells globally, literally operates the largest car charging network in the world, they have stores and service centers all over the globe. They the major players in EV in all major EV markets, US, Europe, China. There is absolutely no reason to exclude them based on your criteria. And also, there is no evidence that these stock prices changes are related to S&P 500 at all. It doesn't really matter for Tesla if they are in the S&P 500. Edit: What the hell is it with downvoting? Tesla is a global 24.58 billion USD revenue company. There is LITERALLY no indication in the S&P guidelines that Tesla doesn't fulfill some requirement. That's a simple fact no matter if you like Tesla or not. Again, I couldn't care less if Tesla is in the S&P500 or not, but there is no series argument against it.
- unethical_ban 6y agoHere's one: Its stock gets meme'd to the moon. It's a target for mass retail speculation and options trading that make its stock an ill measure of the company's actual performance.
- kube-system 6y ago> literally operates the largest car charging network in the world Qingdao TGOOD’s network is almost 8x larger than Tesla’s. https://www.bloomberg.com/news/features/2019-10-15/china-electric-car-chargers-fleet-outpaces-u-s-ev-stations https://www.bloomberg.com/news/features/2019-10-15/china-ele...
- nickik 6y agoBased on some metrics. In terms of how much travel it allows, how fast it charges and so on and so on. Call it the best, the most impressive or whatever you like. Clearly they are a major global player and that was may point.
- henrikschroder 6y ago> They the major players in EV in all major EV markets, US, Europe, China. https://insideevs.com/news/442139/norway-etron-eqc-sales-august-2020/ https://insideevs.com/news/442139/norway-etron-eqc-sales-aug... In a more mature EV market like Norway where there's actual competition and consumer choice, Tesla isn't doing so hot. From the article: Audi e-tron - 755 Mercedes-Benz EQC - 595 Polestar 2 - 504 (according to separate source) Volkswagen e-Golf - N/A (511 total with ICE; mostly BEV) Hyundai Kona Electric - N/A (413 total with ICE; mostly BEV) MG ZS EV - 281 Nissan LEAF - 270 Tesla Model 3 - 264 (total Tesla brand: 348) Renault ZOE - 221 BMW i3 - 152 That's about a 7% market share (edit: New car sales in Norway, August, 2020) for Model 3, 9% for all Tesla models combined. If the VW group is already outselling Tesla in Norway 5 to 1 just in the BEV category, how can Tesla's market cap be 4 times higher than VW's? It fundamentally doesn't make sense.
- Tepix 6y agoThey will get included sooner or later.
- yesplorer 6y agoYes, when the fundamentals are sound.
- bryanlarsen 6y agoTesla's stock is the 8th most popular stock on Robinhood.[1] Tesla was the 9th largest company listed in the United States by market cap.[2] 1: https://www.fool.com/investing/2020/08/03/here-are-the-top-10-most-popular-stocks-on-robinho.aspx https://www.fool.com/investing/2020/08/03/here-are-the-top-1... 2: https://markets.businessinsider.com/news/stocks/tesla-surpasses-walmart-market-value-most-valued-sp500-us-companies-2020-8-1029524035 https://markets.businessinsider.com/news/stocks/tesla-surpas...
- boomboomsubban 6y agoThis logic is how bubbles form. "Lots have people have dumped tons of money into it" is not proof the company is doing well.
- bryanlarsen 6y agoNo, but it is proof that it's large and widely held. The comment I'm replying to said it wasn't either.
- boomboomsubban 6y agoStock owners aren't a consumer base.