The share price of Tesla fell by 20 percent on Tuesday after managers of the S&P 500 decided not to include it.
The market value of Tesla kicked on since its stock split with shares reaching 500 dollars each but in a matter of a week have now fallen to 341 dollars per share.
The S&P 500 is regarded as one of the best overall measures of large-cap US shares.
Tesla’s snub by the S&P 500 index was a shock to investors as the likes of Etsy joined despite having a fraction of the market capitalisation of Tesla.
Etsy was joined by Teradyne and Catalent.
Speculation is rife as to why Tesla has not been included despite its strong growth.
Some of most common thinking is that Tesla wasn’t included due to concerns over its potential volatility and feelings that the technology sector is overvalued (and Tesla certainty has captured much of the upside in recent months).