[twiceaday]

Tesla is currently 2.2% of S&P 500. If it halves, losing $800,000,000,000 usd market cap, the index will go down by 1.1%. What big risk?

[cmiles8]

1.1% is about 15% of the typical returns for a year in the S&P500, from a single stock. Folks and funds invest here for diversity precisely to limit such impacts.

It’s a big risk and that’s why there’s a big fuss right now to keep these guys out of the index.

[re-thc]

> What big risk?

Tesla doesn't drag everyone else down.

>50% of the S&P 500 is involved with these AI providers. There will be a cascading effect.