$100B in motion for TSLA

1. Tesla’s inclusion is expected to put more than $100 billion into motion. Index funds will have to sell smaller stocks already in the S&P 500, somewhere between $60 billion and $80 billion depending on Tesla’s market cap, and use that money to buy shares of the car maker, asset managers and traders said.

2. If the huge burst of demand ahead of inclusion disappears, Tesla’s shares could fall dramatically after they join the gauge, he added. Timing is hard for investors and indexers alike. Yahoo’s market capitalization peaked less than a month after it was added to the S&P 500 in December 1999—just before the burst of the dot-com bubble. Qwest Communications’ market cap peaked the same day it was added to the index in July 2000. Neither stock trades today.

2. The trade date, Dec. 18, coincides with a once-quarterly event known as quadruple witching, the Friday near the end of each calendar quarter on which options and futures on both indexes and stocks expire simultaneously. Volume is usually heavy on those days and would help boost liquidity on the day of Tesla’s inclusion, investors said.

[Reference] https://www.wsj.com/articles/teslas-s-p-500-debut-is-set-to-put-100-billion-in-trades-in-motion-11606645801?mod=hp_lead_pos1?