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Saw this on WSB and curious your guys thoughts
Guys, this is the BIGGEST equity index addition & funding round in history by dollar value:
https://www.spglobal.com/spdji/en/me...nts/#indexNews
The scale of this event is mind-blowing:
In total that's removing around 40% of TSLA's free float from circulation, similar to a TSLA share buyback program of $110b ...
Remember what happened after AAPL gradually bought back ~35% of their shares over the past 7 years? This is now happening to TSLA over just a few weeks ...
The +10% after-hours could just be the beginning.
Guys, this is the BIGGEST equity index addition & funding round in history by dollar value:
https://www.spglobal.com/spdji/en/me...nts/#indexNews
The scale of this event is mind-blowing:
- Passive S&P 500 index following funds (over 5 trillion dollars of assets under management) alone will in the next 4 weeks reallocate 1.01% of their assets and buy & hold 127 million TSLA shares (worth $52b) and effectively move them out of circulation. This alone is more than 17% of the free float.
- But there's another 6.5 trillion dollars of actively managed funds indexed to the S&P 500. They too will buy & hold TSLA shares, worth about $65b, over 22% of the TSLA free float. Many of them own TSLA already - but most of them don't.
- An important detail is that TSLA was not part of the S&P 400 already - in which case for most funds the addition is only an internal reshuffling. It's a new addition, which is rare - and the magnitude of the TSLA S&P 500 addition is unprecedented.
In total that's removing around 40% of TSLA's free float from circulation, similar to a TSLA share buyback program of $110b ...
Remember what happened after AAPL gradually bought back ~35% of their shares over the past 7 years? This is now happening to TSLA over just a few weeks ...
The +10% after-hours could just be the beginning.
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