Shares of Tesla Inc. are falling Monday, on their debut as S&P 500 index components, but they are just giving back a little more than what they gained in the final minute as a non-index member.
The electric vehicle makerâ€™s stock TSLA, -4.98% opened at $666.24, which was $28.76, or 4.1%, below Fridayâ€™s record close of $695.00. It has traded within an intraday range of $651.20, or down 6.3%, to $668.50, or down 3.8%, in early trading Monday.
This is how Michael Oâ€™Rourke, chief market strategist at JonesTrading described the final minutes of Teslaâ€™s stock as a non-S&P 500 member.
â€œBased upon the approximately 70 million shares that traded on the close, it appears the index funds pre-traded tens of millions of shares,â€ Oâ€™Rourke wrote in a note to clients.
He said more than 55 million shares paired off in the final minutes of the session, but it was the last 12-to-15 million shares that caused the spike in prices into the final print.
â€œUp until that final minute of the session, 69.4 million shares had traded at an average price of $665.07,â€ Oâ€™Rourke wrote.
The stock officially entered the S&P 500 after Fridayâ€™s closing bell.
The stock was recently down $35.66, or 5.1%, at $659.34. But that price was just $5.73, or 0.9%, below the average price up until Fridayâ€™s final minute, as funds scrambling to buy the stock ahead of S&P 500 inclusion really goosed the price. In comparison, the S&P 500 SPX, -1.08% was down 1.4%.
As an example of the hectic trading in the final seconds, hereâ€™s a small snapshot of time-and-sales from FactSet:
The SPDR S&P 500 exchange-traded fund SPY, -1.02%, which wouldâ€™ve been one of those funds needed to add Tesla, had $318.37 billion assets under management as of the Dec. 18 close, compared with $318.19 billion as of Thursdayâ€™s close, even as the â€œSpidersâ€ fell 0.8% on Friday after closing at a record on Thursday.