Tesla investors should expect a ‘significant selloff’: Analyst

 Tesla investors should expect a ‘significant selloff’: Analyst (Gordon Johnson)

https://finance.yahoo.com/video/why-one-analyst-says-tesla-171210699.html 

 

 

Gordon Johnson:

And with respect to S&P inclusion I think this is important. Since the S&P announced they were going to delay the inclusion about a month and a half ago-- they were going to include them about a month and a half ago-- there's been about a billion shares traded. And prior to that, when they reported a profit in 2Q, there was a billion shares traded around that time.

However, based on the S&P zone estimate, there's about 130 million shares that need to be purchased by indexed fund holders. So the point is, on that inclusion you're going to potentially have a lot of shares that had been front run-- that have been front run, on this inclusion that are going to have to be sold. So you could have a significant sell off on Friday or before Friday as some of that money that went into Tesla's stock looking for inclusion comes off.