Jim Cramer: Tesla S&P 500 (& hilarious Yahoo comments)

TL;DR

With Tesla's inclusion in the S&P 500, there is speculation on whether Elon Musk will change his behavior, but it is unlikely to happen.

Transcript

i would argue that scrutiny only goes up and now the onus on him is to act like more like a more regular ceo he may hate it but that's the reality you want to play with the big dogs you have to be a big dog hey i'm stephen and this is solving the money problem if you're new welcome if you're not welcome back if you're still not sick of tesla s p 50... Read More

Key Insights

• 💋 Tesla's inclusion in the S&P 500 marks a significant milestone for the company and could result in increased visibility and potential financial benefits.
• 🥺 Some believe that being part of the S&P 500 might lead Elon Musk to modify his behavior, but his consistent disregard for public opinion suggests otherwise.
• 🫰 The S&P 500 index is criticized for its inclusion of companies that may eventually become obsolete due to technological advancements.
• 🤔 Younger investors are more inclined to invest in individual stocks rather than ETFs, as they believe in picking specific companies they think will succeed.
• 😥 Tesla's profitability has been a point of contention, but its inclusion in the S&P 500 implies that the company meets the necessary criteria for inclusion.
• 🫰 Tesla's performance and market position have propelled it to become one of the highest-valued companies in the index.
• 🙈 The influence of mega-cap companies, including Tesla, on the movement of the S&P 500 index cannot be ignored.

Questions & Answers

Q: What effect will Tesla's inclusion in the S&P 500 have on Elon Musk's behavior?

It is improbable that Elon Musk's behavior will change as a result of Tesla's inclusion in the S&P 500. He has consistently shown a disregard for others' opinions and has remained true to himself.

Q: How does Tesla's profitability factor into its inclusion in the S&P 500?

Despite questions regarding its profitability, Tesla has met the criteria set by the S&P 500 committee for inclusion. This suggests that the committee believes the company deserves a place in the index.

Q: Will Elon Musk's behavior be more closely scrutinized now that Tesla is part of the S&P 500?

Yes, there will likely be increased scrutiny on Elon Musk's behavior as Tesla's inclusion in the S&P 500 brings higher visibility. However, it is uncertain whether this will lead to any significant changes in his actions.

Q: What impact could Tesla's inclusion in the S&P 500 have on its financials?

Tesla's inclusion in the S&P 500 could provide a boost to its financials, as it opens the company to a larger investor base and potentially increased market value. However, the long-term effects remain to be seen.

Summary & Key Takeaways

• Tesla's shares rose by 13% and, with its inclusion in the S&P 500, it would become the 10th largest stock in the index by market cap.

• While there has been controversy surrounding Tesla's profitability, the company has met the criteria for inclusion in the S&P 500 as determined by the committee.

• Some argue that being part of the S&P 500 might lead Elon Musk to modify his behavior, but it is unlikely as he has shown a consistent disregard for others' opinions.