โฑ๏ธ 4 ๐˜ฎ๐˜ช๐˜ฏ๐˜ถ๐˜ต๐˜ฆ๐˜ด ๐˜ต๐˜ฐ ๐˜ณ๐˜ฆ๐˜ข๐˜ฅ โฑ๏ธ ๐—ง๐—Ÿ;๐——๐—ฅ read the ๐—ฏ๐—ผ๐—น๐—ฑ and add important dates to your calendar!

Last 21st September, we’ve had the crafters marketplace Etsy, industrial automation and robotics Teradyne, and pharmaceutical Catalent, joining S&P 500. All of these together represented a tenth of Tesla’s market cap.
S&P committee shed some light regarding the next addition to the index, ๐—ง๐—ฒ๐˜€๐—น๐—ฎ, as a $530B+ technology/solar/electric vehicle monster with one of the most beloved CEO of all time, Elon Musk.

๐—”๐—น๐—น ๐—ฎ๐˜ ๐—ผ๐—ป๐—ฐ๐—ฒ, ๐—ผ๐—ฟ ๐˜€๐—บ๐—ฎ๐—น๐—น๐—ฒ๐—ฟ ๐—ฐ๐—ต๐˜‚๐—ป๐—ธ๐˜€?
Given the size of the company, adding it to the index is not an easy deed as the company is already in the top 10 regarding market cap.
As this will shake the entire index, the S&P committee disclosed that there were multiple possible approaches proposed by investors, including separating into two tranches, one in December and the other in March.
The suggestions were discarded, and ๐—ง๐—ฒ๐˜€๐—น๐—ฎ ๐˜„๐—ถ๐—น๐—น ๐—ณ๐˜‚๐—น๐—น๐˜† ๐—ท๐—ผ๐—ถ๐—ป, ๐—ถ๐—ป ๐—ฎ ๐—ผ๐—ป๐—ฒ-๐˜€๐—ต๐—ผ๐˜, ๐˜๐—ต๐—ฒ ๐—ฆ&๐—ฃ๐Ÿฑ๐Ÿฌ๐Ÿฌ ๐—ฏ๐—ฒ๐—ณ๐—ผ๐—ฟ๐—ฒ ๐˜๐—ต๐—ฒ ๐˜€๐˜๐—ฎ๐—ฟ๐˜๐—ถ๐—ป๐—ด ๐—ผ๐—ณ ๐˜๐—ต๐—ฒ ๐˜๐—ฟ๐—ฎ๐—ฑ๐—ถ๐—ป๐—ด ๐—ฑ๐—ฎ๐˜† ๐Ÿฎ๐Ÿญ๐˜€๐˜ ๐——๐—ฒ๐—ฐ๐—ฒ๐—บ๐—ฏ๐—ฒ๐—ฟ.

๐Ÿ“… ๐—œ๐— ๐—ฃ๐—ข๐—ฅ๐—ง๐—”๐—ก๐—ง ๐——๐—”๐—ง๐—˜ #๐Ÿญ ๐Ÿฎ๐Ÿญ๐˜€๐˜ ๐——๐—ฒ๐—ฐ๐—ฒ๐—บ๐—ฏ๐—ฒ๐—ฟ – ๐—ง๐—ฒ๐˜€๐—น๐—ฎ ๐—ฎ๐—ฑ๐—ฑ๐—ถ๐˜๐—ถ๐—ผ๐—ป

๐—ช๐—ต๐—ฎ๐˜ ๐—ฎ๐—ฏ๐—ผ๐˜‚๐˜ ๐˜๐—ต๐—ฒ ๐—˜๐—ง๐—™๐˜€?
Being added on Monday 21st December means that all funds that mirror or somehow track the index will make their moves in preparation on the Friday before, 18th December.

๐Ÿ“… ๐—œ๐— ๐—ฃ๐—ข๐—ฅ๐—ง๐—”๐—ก๐—ง ๐——๐—”๐—ง๐—˜ #๐Ÿฎ ๐Ÿญ๐Ÿด๐˜๐—ต ๐——๐—ฒ๐—ฐ๐—ฒ๐—บ๐—ฏ๐—ฒ๐—ฟ – ๐—™๐˜‚๐—ป๐—ฑ๐˜€ ๐—ฝ๐—ฟ๐—ฒ๐—ฝ๐—ฎ๐—ฟ๐—ฎ๐˜๐—ถ๐—ผ๐—ป

๐—›๐—ผ๐˜„ ๐—ฏ๐—ถ๐—ด ๐—ถ๐˜€ ๐˜๐—ต๐—ฒ ๐—ฐ๐—ผ๐—บ๐—ฝ๐—ฎ๐—ป๐˜† ๐—ฐ๐—ผ๐—บ๐—ฝ๐—ฎ๐—ฟ๐—ฒ๐—ฑ ๐˜๐—ผ ๐—ผ๐˜๐—ต๐—ฒ๐—ฟ ๐—ฝ๐—ฎ๐—ฟ๐˜๐˜€ ๐—ผ๐—ณ ๐—ฆ&๐—ฃ๐Ÿฑ๐Ÿฌ๐Ÿฌ?
As mentioned previously, the company is currently evaluated at around $530B, making it the 6/7th-largest company in the U.S. stock market.
Facebook’s $820B market cap attributes a 2.21% weight, while Berkshire Hathaway INC’s $537B market cap attributes a 1.52% weight, hence we can expect Tesla to fit around these values – 1.5 to 1.6%.

Let take the scenario where ๐—ง๐—ฒ๐˜€๐—น๐—ฎ ๐˜„๐—ฒ๐—ถ๐—ด๐—ต๐˜๐˜€ ๐—ฎ๐˜€ ๐—บ๐˜‚๐—ฐ๐—ต ๐—ฎ๐˜€ ๐—•๐—ฒ๐—ฟ๐—ธ๐˜€๐—ต๐—ถ๐—ฟ๐—ฒ ๐—›๐—ฎ๐˜๐—ต๐—ฎ๐˜„๐—ฎ๐˜† ๐—œ๐—ก๐—–, ๐Ÿญ.๐Ÿฑ๐Ÿฎ%

According to spglobal.com, the ๐—ถ๐—ป๐—ฑ๐—ฒ๐˜… contains $๐Ÿฐ.๐Ÿฒ๐—ง, therefore, the moment the company joins the index, we can expect
๐Ÿ‘‰ $๐Ÿฒ๐Ÿต.๐Ÿต๐Ÿฎ๐—• ๐˜๐—ผ ๐—ฏ๐—ฒ ๐—ฎ๐—ฑ๐—ฑ๐—ฒ๐—ฑ ๐˜๐—ผ ๐—ง๐—ฒ๐˜€๐—น๐—ฎ ๐˜๐—ต๐—ฎ๐—ป๐—ธ๐˜€ ๐˜๐—ผ ๐˜๐—ต๐—ฒ ๐—ฆ&๐—ฃ ๐—ฎ๐—น๐—ผ๐—ป๐—ฒ

Also according to spglobal.com, there is $๐Ÿญ๐Ÿญ.๐Ÿฎ๐—ง ๐—ถ๐—ป๐—ฑ๐—ฒ๐˜…๐—ฒ๐—ฑ ๐—ผ๐—ฟ ๐—ฏ๐—ฒ๐—ป๐—ฐ๐—ต๐—บ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐—ฑ to S&P500, therefore, the moment the company joins the index, we can expect
๐Ÿ‘‰ $๐Ÿญ๐Ÿณ๐Ÿฌ๐—• ๐˜๐—ผ ๐—ฏ๐—ฒ ๐—ฎ๐—ฑ๐—ฑ๐—ฒ๐—ฑ ๐˜๐—ผ ๐—ง๐—ฒ๐˜€๐—น๐—ฎ ๐—ณ๐—ฟ๐—ผ๐—บ ๐—ฆ&๐—ฃ ๐—ฎ๐—ป๐—ฑ ๐—ฎ๐—น๐—น ๐—˜๐—ง๐—™’๐˜€ ๐—บ๐—ถ๐—ฟ๐—ฟ๐—ผ๐—ฟ๐—ถ๐—ป๐—ด ๐—ถ๐˜

This explains why we tend to see multiple surges regarding the process of a company joining the index – typically with much smaller values.
As money is certain to flow in from index and funds, this tends to attract a lot of day traders searching for quick profits, as such, ๐—ฒ๐˜…๐—ฝ๐—ฒ๐—ฐ๐˜ ๐—ฒ๐˜ƒ๐—ฒ๐—ป ๐—ต๐—ถ๐—ด๐—ต๐—ฒ๐—ฟ ๐˜ƒ๐—ผ๐—น๐—ฎ๐˜๐—ถ๐—น๐—ถ๐˜๐˜† ๐—ถ๐—ป ๐˜๐—ต๐—ฒ ๐—ป๐—ฎ๐—บ๐—ฒ ๐—ณ๐—ผ๐—ฟ ๐—ฎ ๐˜„๐—ต๐—ถ๐—น๐—ฒ.

I’ve made a video that explains the process of a company joining the S&P and what we can expect, back on 7th September, feel free to check it out!
Tesla does not join S&P500 – Should we hold it? https://youtu.be/bh4c074EkXg

๐—ช๐—ต๐—ฎ๐˜ ๐˜„๐—ถ๐—น๐—น ๐—ง๐—ฒ๐˜€๐—น๐—ฎ ๐—ฟ๐—ฒ๐—ฝ๐—น๐—ฎ๐—ฐ๐—ฒ?
S&P didn’t yet disclose what stock Tesla will be replacing, only that it will be announced on 11th December

๐Ÿ“… ๐—œ๐— ๐—ฃ๐—ข๐—ฅ๐—ง๐—”๐—ก๐—ง ๐——๐—”๐—ง๐—˜ #๐Ÿฏ ๐Ÿญ๐Ÿญ๐˜๐—ต ๐——๐—ฒ๐—ฐ๐—ฒ๐—บ๐—ฏ๐—ฒ๐—ฟ – ๐—ฆ&๐—ฃ ๐—ฎ๐—ป๐—ป๐—ผ๐˜‚๐—ป๐—ฐ๐—ถ๐—ป๐—ด ๐˜„๐—ต๐—ผ ๐˜„๐—ถ๐—น๐—น ๐—ฏ๐—ฒ ๐—ฟ๐—ฒ๐—ฝ๐—น๐—ฎ๐—ฐ๐—ฒ๐—ฑ

๐—”๐˜๐˜๐—ฒ๐—ป๐˜๐—ถ๐—ผ๐—ป, ๐—ผ๐—ฝ๐˜๐—ถ๐—ผ๐—ป๐˜€, ๐—ฎ๐—ป๐—ฑ ๐—ณ๐˜‚๐˜๐˜‚๐—ฟ๐—ฒ๐˜€!
The options market calendar reveals that on the 19th of December we’ll have the once-in-a-quarter day event when options and futures will expire simultaneously, expecting a high volume of trading and boosting liquidity.
Part of this liquidity might flow right to Tesla’s inclusion, so, again, ๐—ฒ๐˜…๐—ฝ๐—ฒ๐—ฐ๐˜ ๐—ฒ๐˜ƒ๐—ฒ๐—ป ๐—ต๐—ถ๐—ด๐—ต๐—ฒ๐—ฟ ๐˜ƒ๐—ผ๐—น๐—ฎ๐˜๐—ถ๐—น๐—ถ๐˜๐˜†.

๐Ÿ“… ๐—œ๐— ๐—ฃ๐—ข๐—ฅ๐—ง๐—”๐—ก๐—ง ๐——๐—”๐—ง๐—˜ #๐Ÿฐ ๐Ÿญ๐Ÿต๐˜๐—ต ๐——๐—ฒ๐—ฐ๐—ฒ๐—บ๐—ฏ๐—ฒ๐—ฟ – ๐—ผ๐—ฝ๐˜๐—ถ๐—ผ๐—ป๐˜€ ๐—ฎ๐—ป๐—ฑ ๐—ณ๐˜‚๐˜๐˜‚๐—ฟ๐—ฒ๐˜€ ๐—ฒ๐˜…๐—ฝ๐—ถ๐—ฟ๐—ฎ๐˜๐—ถ๐—ผ๐—ป

๐—ฆ๐—ผโ€ฆ ๐—ช๐—ต๐—ฎ๐˜ ๐˜๐—ผ ๐—ฑ๐—ผ?
The EV story keeps getting better, all car manufacturers are racing to update their assembly lines to produce EV’s, and this has been Tesla’s foundation.
Like many others, I’m feeling very confident about Tesla going forward!

Sources WSG, spglobal.com, seeking alpha, investing.com

$TSLA (Tesla Motors, Inc.)