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How might being added to NASDAQ 100 affect Tesla stock price?

Tesla Motors Inc. (TSLA), the world’s best-performing automotive stock this year, will join the Nasdaq-100 Index next week, filling the spot vacated by Oracle Corp. (ORCL), which is moving to the New York Stock Exchange.

The electric-car maker will be added to the gauge, which tracks the biggest companies on the Nasdaq, before the start of trading on July 15, Nasdaq OMX Group Inc. (NDAQ) said in a statement yesterday. Oracle, which last month said it will join the NYSE, is the biggest company to jump between the rival exchanges.

+3.39 premarket; $125

TSLA is now much more attractive for institutional investors because it was added to the Nasdaq 100. They will pick it up - the stock should profit from that move.

It becomes a must-buy for some index funds--can't hurt.

This can only help the stock, as index funds and other funds trying to mimic the market will now be buyers. TSLA was up significantly overnight.

My biggest fear {not a concern troll} is that Tesla will start kowtowing to analysts more so than pursuing Musk's vision, emphasizing making the quarterly numbers instead of innovation and quality. Many companies have fallen into this cycle of short-term thinking as a result of the pressure of being a high-visibility stock. I truly hope Tesla proves itself to be different on this dimension as well.

cfOH - to some degree we are seeing that already. Elon is clearly pushing for increased profit margins BUT what is the alternative? Tesla has to be a public company, otherwise they could never finance the push for electric cars.

The stock must be successful to be attractive to investors. The trick will be to achieve some sort of balance. It won't be easy but there just isn't any other way.

@Carefree: Oh, no, I totally get it...you have to pay your bills, you have to retire debt. That makes total sense. And when demand outstrips your capacity, and you can't easily add capacity, raise your prices.

If Tesla ever lays off 10% of its workforce right before the quarterly call with analysts, I'll know the ride is over.

@cfOH - totally agree!

@cfOH,

As your chart in the thread of Tracking highest VINs shows, TM will enjoy the fast growth in this year without any problems to meet the 21,000 MS target (hopefully also to meet 25% profit margin goal by third quarter) since the production has already reached 17,000 MS by now. Therefore, we should enjoy the ride of the incredible stock price upward at least until TM reaches the valuation of $44B.

Tesla shares were up $2.43, or 2.00% today following last night's announcement.

LoL. I remember when $2.43 would have been 10%!!!

It's hard for me to believe that Elon, with his individualistic approach, which has resulted in a 450% increase in stock price, is going to start doing things the "company way."

rzitrin;
As a startup, fast expanding company, TM needs profit to turn into new capacity ASAP. Elon talks about expanding using 'internal cash flow' only. This is how it's done.

While having the recall work done I overheard the Tesla employees talk about all the deliveries scheduled for that weekend, which happened to be the last weekend of June. Then they said, "Oh yeah, end of the quarter push." They're aware of meeting quarterly numbers and the impact it has on publicly traded companies. I hope they don't rush things just to make numbers...

Current market cap is higher than Fiat and approx a quarter to a third of Daimler!!! In numbers of cars being produced, the figures simply don't stack up. So what actually is going on here? I wimped out and sold most of my holding at 125, which actually buys me the car, thanks Elon! I kept just enough stock to now get my original stake back, provided the stock keeps rising, altho' what is supporting it remains a mystery to me.
This was a bird in the hand situation for me.

@dborn It behaves like a tech stock, not a car-maker stock. Comparing TSLA to DC or Ford is using the wrong benchmarks, IMO.

What is supporting it is the same as any stock or product: if the price drops, buyers pile in and buy more. :)

@dborn

The stock is supported by the thought that in 2-3 years Tesla could be selling hundreds of thousands of cars.

And keeping all repair revenue.

And keeping all dealership revenue.

And keeping all maintenance revenue.

And adding "upgrade" revenue.

And adding partner/Supercharger revenue.

And adding fueling/swap revenue.

And adding SolarCity backup power revenue.

And adding Solar/TOU/Grid Backup revenue.

And it hasn't sold a Model S outside of North America yet.

Samo;
technically correct that no "sales" have occurred outside the US, since no deliveries have occurred, but there are quite a few thousand purchase commitments in Europe about to get recognized in Q3 and Q4.

Brian H,

Agree. But no income yet captured from those "commitments" since my comments were based on all the good news baked in.

How about no sales outside of North America. Canada is not part of the USA yet. :)

I think much of the European Sales good news is in fact baked in, as they have been estimated in the shareholders' and quarterly reports at 5,000 or so for the year. So they won't come as an upside suprise!

STARR X
North America as in continent (not country), of which Canada is part of.

@BrianH,

I don't think many people even know about Tesla. This is doubly true of Europe.

I doubt that very much is "baked-in" to this point.

Brian H,

*Surprise :) Sorry. I know I'm a new poster, but I'm a long time lurker and soon to be Model S owner. Hate to get off on the wrong foot, but I HAD to catch our resident grammar police officer on a typo (even if it was a mistype). As you were... :)

Don't forget about the Development business in the future. This has the potential to be a huge impact on their earnings if the other guys are forced to buy Tesla drivetrains because they can't create one that can match Tesla's range.

There was a long comprehensive article recently breaking down, among other things, the various future revenue streams Tesla might enjoy - upgradeable batteries and so on. Can't find it right now - anyone got that link handy?

Do you mean the ones on SeekingAlpha.com?

Samo;
We're discussing share price, and the market does know about the sales(= deliveries) expected for Europe this year. That's "baked in" to the current price, therefore.

And it just hit $128+‼ Index buying?


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