Shares of Tesla Inc. TSLA, -4.69% sank 5.6% in premarket trading, to pullback from back-to-back record closes at the end of last week, as Wall Street prepped to see the mammoth electric vehicle maker finally be included in the coveted S&P 500 SPX, -1.15%. The stock shot up 11.6% the past two days to Friday’s record close of $695.00, as funds tracking the benchmark index looked to added the stock before Friday’s close, when the inclusion was official. As MarketWatch’s Claudia Assis reported, citing Bernstein analyst Toni Sacconaghi, there is a precedence for stocks to rally ahead of S&P 500 inclusion, but not much history of outperformance after inclusion. Tesla’s market cap at Friday’s close was $658.79 billion, which would make Tesla the six-month valuable company in the S&P 500.
This article was originally posted by MarketWatch.