Tesla (TSLA) is taking a massive hit this morning.
At 10am, shares were down another $77 a share after plunging on news of a stock offering. Nowadays, the EV maker it down on news of an S&P 500 snub. Even after posting its fourth consecutive quarter of profitability, Tesla was left out of the index.
“Unclear why [Tesla] was not included in the recent rebalancing cycle, though we do think the stock will be eventually added to the S&P 500, having fulfilled all inclusion criteria,” Baird analyst Ben Kallo said, as quoted by Marketwatch.
While the stock appears weak, keep an eye on it for a buy opportunity.
And remember there’s still plenty of momentum behind the company.
According to a new study from the Boston Consulting Group, by 2025, EVs could account for a third of all auto sales. By 2030, EVs could surpass internal combustion engine vehicles with a market share of 51%. Plus, experts now predict that by 2030, electric cars will make up 58% of the light vehicle market.
In addition, the TSLA stock is quite attractive after a 5:1 split. TSLA now trades at $344. From here, we’re confident the stock could see higher highs once the pullback is exhausted.
The post This is Why Shares of Tesla Were Smoked this Morning appeared first on Morningology.
