Re:Stock Market: What Happens If Tesla Enters S&P 500
by tachyonbeam on Saturday August 01, 2020 @04:00PM
(#24023414)
The S&P committee can ask Tesla to issue shares to be sold directly to large funds so that the price doesn't move too much. This could be an opportunity for Tesla to raise 10 to 20B, which wouldn't be such a bad move, as it would allow them to erase all their debt and build more gigafactories or make acquisitions. So there is no guarantee that the stock price will go up even if Tesla gets included.
- Buy some TSLA now that its price has fallen recently.
- Try to find out what other S&P 500 stocks would hedge fund managers have to sell to make room for TSLA. I suspect these won't be best-performing or long-term most promising stocks. Sell / short them now before they plunge, if you hold them for whatever reason.