Tesla slips in debut trade on S&P Index

New York: Tesla was a big drag on the S&P 500 in its debut trading on the benchmark index.

The electric-vehicle maker plunged as much as 6.3% as it clawed back gains from Friday when index-fund managers bit into tens of millions of shares.

Tesla forms 1.6% of the index, which fell as much as 2% amid fears of a new covid strain that has emerged in the UK

Institutional buying had surged late Friday as managers tracking the indices added Tesla shares to their funds.

As much as $60 billion worth of Tesla shares changed hands at $695 a share, most of it in one giant trade in the closing seconds.

Other EV firms were also weak on Monday, with some of the biggest declines coming from Nikola Corp and Workhorse Group.

Tesla has boomed 731% this year through Friday in anticipation of the historic S&P index inclusion, making it the biggest company ever to be added to the benchmark.

The EV pioneer also entered the S&P 100, replacing oil and gas company Occidental Petroleum.

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