WILL TESLA STOCK KEEP GOING UP? EXPLORING THE MECHANICS OF S&P 500 INCLUSION (TSLA)

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This episode delves into the intricate mechanics and implications of Tesla's potential inclusion into the S&P 500 index. The analysis meticulously breaks down the required share purchases, float-adjusted market cap calculations, and the impact of index fund rebalancing. The presenter highlights that while the exact number of shares to be bought is substantial, ranging from 26 to 63 million depending on asset allocation, the share count itself remains relatively consistent regardless of Tesla's stock price. Key concerns raised include stock liquidity, with the possibility of Tesla being asked to conduct a secondary offering to improve it, and the timing of purchases, which is expected to be spread out rather than occurring all at once to mitigate price volatility. The discussion also touches upon recent Tesla news, including a price reduction for the Model Y and the cancellation of its standard range version, with the presenter expressing bullish sentiment despite market volatility.