And just like that, Tesla was delisted from the S&P500. He did call it. Now let’s see what Elon does to the SEC…
(media.greatawakening.win)
😷 DEM PANIC 💉
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What benefit does a company receive by being one of the S&P companies?
The S&P500 is basically the largest 500 public companies in the USA, and the S&P500 index is a weighted average of those companies. The advantage of being in the index is that a lot of mutual funds track the index, and they only buy stock in companies that are in the index. So when a company gets added, there's usually a huge cash flow into that company's stock, and the price rises. Likewise, when a company is removed, there's a huge cash flow out of that company's stock and the price falls.
That being said, OP was not clear. Tesla is removed from the S&P500 ESG index which is an index of woke companies. This index is not as popular, and as such, the effects of being removed are much less.
Thank you very much!