Updated S&P 500 Numbers, FSD Beta 5, Supercharger Factory (11.25.20)
Gain on the day that compared to the nasdaq up half a percent. If we take another look at volume it That was five relatively hundred and seventy in the range four dollar that we've had closing for price. That was a three point. Four percent gain on the day that compared to the nasdaq up half a percent. If we take another look at volume it was relatively in the range that we've had for the last couple of days about forty seven point eight million shares so about one hundred and thirty three percent to average over the last month but only seventy three percent to average over the last year the movement today was a continuation from the strength and after hours yesterday. Tesla traded in that sort of five hundred and sixty dollar range but we actually saw fall in the pre market to the five hundred forty dollar range on some news of some recalls tussle shook off throughout the day. I think they're pretty insignificant. The market i think realized that throughout the course of the day. So we're not going to spend time on them but there were recalls issued for the model x. And for the monowai by the national highway traffic safety administration for the model x. There was just an issue with a cosmetic advocate at the front of the roof just behind the windshield for the model x. That if the adhesion process was done without a primer could be at risk for flying off at high speeds of travel. It's a says this could potentially impact about nine thousand vehicles model x. vehicles produced from september of two thousand fifteen to july of two thousand sixteen. And that nigga is not aware of any accidents or injuries resulting from this condition as for the monowai. Nitsa says that four model is produced between august twenty eighth and november sixth. There were four hundred and thirty seven. Four which manufacturing records could not confirm that the front upper control arm was probably fastened to the steering knuckle so that just needs to be confirmed or corrected if there are any issues and that's again says they're not aware of any accidents or injuries from that condition all right moving into the update the numbers on snp inclusion. A lot of people have asked for this recently with the you know now. Thirty plus percent increase. We have seen since the announcement so we'll take an updated look at the required capital. The waiting and the amount of shares that these index funds need to purchase. I noticed. there's this misperception out there. We've talked about in the past. But people seem to think that as tesla stock price increases the amount of shares that need to be purchased also increases actually saw this in a baron's article today with the headline of quote tesla stock rises again creating another problem for index funds. They go on to talk about how. Since the inclusion the stock is up thirty eight percent that means that tussle will be about the fifth or sixth largest company in the and index and they write here quote and the more valuable it gets the more shares index funds have to buy and quote so with the big move in the stock. A lot of questions on this and now this misperception making its way all the way into barons article. I thought this was the perfect time to revisit our at so. Let's hop back into tracking spreadsheet. Here we have all the numbers updated for today. November twenty fifth so tesla's closing price. Five hundred seventy four dollars. The s&p price. That's about thirty six hundred twenty nine dollars today. Yes and p five hundred divisor so as a reminder that's just a metric that the snp uses internally to make sure that the share price for the index stays equivalent to its past performance based on companies that are added so for example. If you add tesla at you know a four hundred billion dollar market cap and you take a company out at ten billion dollars you need you. Adjust for that to make sure that the share price for the index isn't changing simply based on adding a new company. That wouldn't work so that. Sap divisor is what compensates for that so keep that in mind but that gives the snp total market cap of roughly thirty trillion dollars as of today so with tesla's float adjusted market cap which remember removes shares. That are unlikely to be able to be sold such as those held by ilan or other insiders that would be four hundred and thirty six billion dollars today. Roughly at that five hundred seventy four dollar share price so we can use that to figure out the weight and here. I've added another little step. That i think makes this a little bit. More correct actually added the market cap of tesla to get the s. and p. five hundred float market cap including tesla so that bumps up by four hundred and forty billion dollars so instead of being thirty trillion. It's thirty point four trillion. That's more accurate. Because one's tesla is added. That's what will happen. And then i'm just gone ahead and removed five billion from that total because i assume tesla will replace a company. That's you know right around. That market cap. That doesn't make too much of a difference. But just for completeness sake and then if you're following along with that divisor concept that's where this comes into play so when tesla's added they don't want that to change the price of the index so they'll change the divisor instead so we can figure out what that would be simply by dividing this new market cap by the current share price. Whatever it is at that time will use today for example and that gives us our new divisor which goes up from eight point seven to eight point three nine all right. We're through the hardest part of the math. Then then we can just figure out. Wait by taking tesla's float market cap dividing it by that new total. Snp market cap and that ends up with a wheat at tussles current share price.