Lets go to go over the reason Tesla stock has increased so much over these last few months, whether or not it’ll continue to go even higher, and then how much the price will be affected if it joins the SP500 – Enjoy! Add me on Instagram: GPStephan

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IF Tesla meets the full eligibility for SP500 inclusion, and IF it’s voted on to join the SP500..how much of an effect will this have on the stocks price, and is getting added to an index all it takes to boost up the stock?

When a stock is going to be added to an index, it’s announced AHEAD OF TIME – BEFORE index fund managers can actually go ahead and buy it. This leaves time for individual investors and speculators to buy in, anticipating it being added to the index within the coming week – and trying to make a profit.

When it was researched, it was found that stocks DO generally see a rise in price once it’s ANNOUNCED they’re going to be added to an index – but ONCE they’re actually added to the index, the pent up demand slows down – the stock price drops – and then it returns it a new “normal.”

This was also confirmed by a study published in the 1990’s, that found that the announcement and inclusion of a stock within the SP500 DID have a measurable effect on the price…short term.

Long term, however, it was found that adding a stock to an index has no permanent effect on the price.

In fact, it was studied that a stocks “premium” for being added to an index completely wore off after 2 months, usually returning to the same price before it was ever announced.

And overall, studies have shown that stocks added to an index did NOT see any superior performance and demand over stocks which were NOT traded within an index…

Likewise, it was also found that stocks REMOVED or BUMPED DOWN from an index did not see any large dip in price, now that they weren’t being bought by an index….

So, IF Tesla gets added to the SP500 – according to all the history and research out there – the ANNOUNCEMENT that it’ll be added will have a MUCH more powerful affect on the stock price than the actual INCLUSION of the stock to the index. After all, Yahoo was cited as being the most recent comparable of its size back in 1999…that stock surged 64% in 5 days between the announcement of being added to the index, and actually being added to the index.

But once a company is added to an index – it must actually PERFORM well, and much of its stock price movement will be from it’s earnings, performance, and ongoing development. Otherwise, if it doesn’t perform well, it’ll get bumped and the price will go down – causing a small percentage of the overall index to go down, with it.

But there’s one message I just want to make clear…in my personal opinion…at these levels, investing in Tesla is a gamble – and if you’re going to buy in, hold it with the expectation of keeping it for at a LONG TIME. This is the type of stock that’ll be just as likely of dropping 50% as it is of going UP another 50%….so, if you buy in, just be prepared for a really, really wild ride – for better or worse.

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.


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  1. What's amazing is so many subscribers to a "Fluff" or "Jingle" type youtube station where it is all about the owner who puts out a video entitled, "Revealing MY ACTUAL Net Worth". Viewing the avatars, the average age group must be 23. The main stream media should hire this guy as they too are looking to sell something to that age group (because they are easy).

  2. It can still be included. You couldn’t get shares on margin for several months leading into September, meaning they were being funneled to fund managers that needed the shares for P&P500 inclusion. Front running the shares and not announcing inclusion on this months first round is a cunning way to manage the parabolic move when announced later this week before battery day.

    The S&P500 private committee are no dummies. They’re trying to get this done now before Battery Investor Day because the valuation will just keep going up. Increasing the difficulty of induction into the S&P500.

    Tesla will only be less than 1.5% of the index pull. Hardly a problem as others have said due to its volatility. The powers that be want it included because it will increase the appearance that the US market is going strong.

  3. A lot of people are rushing into the stocks market hoping to make so much from this great opportunity without having the right trading approach and that leave them with so much regrets. Take my advice, If you are a beginner and don't want to waist your time and money trading stocks i will suggest you invest through a portfolio manager who will handle trading activities on your behalf, trust me it helps minimize risk. That's what i do and i make $4000 weekly from a $22000 investment

  4. usually i like your videos, but this thumbnail is bullshit. I am aTesla Stockholder as well since 2 years now and as a huge musk fan i spent at least 5 hours a week reading about tesla stock. Still your video about this subject is sry 2 say garbage

  5. Currently, selling at 900 was stupid. But who knows and who coulda said back then? And who knows if in the future it will keep going up. I hope so, I've made 4x my investment. I am just watching it like a hawk and planning to put in more tbh.

  6. lol, 59 year old Elon Musk, old guy with a face lift goes wrong, froM South Africa – obviously Dutch origin…how this guy ever made it in the US, lol… HE always shows pictures of himself from 10 years ago….lmao…

  7. I'd buy tesla shares just because I know elon musk is the real deal. and also i would like to know, do the big investors also see the founder or the ceo and his credibility before investing in stocks. Because I feel investing in companies like tesla, apple and amazon would never lose my money.

  8. please people spred the word im a veteran army branch i had over 20000 dollar saving and i decide to buy stock of urban one (uone) at 14,40 and now in less than a month is 7,06 a share ,,its a big scam and i lost all my money ,,scammmmmmm stay away people please

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