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Tesla Won’t be Joining the S&P 500

The S&P Dow Jones Indeces announced changes to the S&P 500 index, effective at the open of trading Sept. 21. The addition list did not include Tesla , which was in the running to join the elite index.

The S&P 500 index adds Etsy, equipment manufacturer Teradyne, and pharmaceutical firm Catalent . All three names had been previously included in the S&P MidCap 400.

Tax services firm H&R Block , beauty firm Coty, and retailer Kohl’s will be deleted from the S&P 500 index, and moved to the MidCap 400 index.

The S&P Dow Jones Indeces rebalances the index on a quarterly basis, adding new names and kicking others out.

To be considered for the index, a company needs to meet certain benchmarks, including four consecutive quarters of profitability, but inclusion is ultimately up to the discretion of the S&P committee.

After Tesla’s last earnings report, in which it reported its fourth straight quarter of positive earnings, the carmaker became eligible for the index.

Tesla shares plunged 7% in after hours trading on Friday after it was excluded from the rebalancing announcement.

Tesla’s stock has seen an incredible run-up year to date, with its valuation swelling to $390 billion as of Friday.

The company recently enacted a 5-to-1 split of its stock, effective on Monday of this week. Tesla shares closed at $418.32 on Friday.

On Wednesday, an SEC filing showed that Baillie Gifford, the largest outside shareholder in Tesla, cut its stake in the carmaker to less than 5% of Tesla, down from 6.32%, according to data from FactSet.