Tesla’s Big Drop Is Volatility the S&P 500 Better Get Used To

  • Monday is first day Tesla trades as part of the stock index
  • Electric-vehicle maker is third most-volatile stock in S&P 500
Bob Sloan of S3 Partners says people are still shorting Tesla.Source: Bloomberg)
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It didn’t take long for Tesla Inc.’s price swings to heavily influence the S&P 500 after its addition to the benchmark.

The electric-vehicle maker slumped more than 5% as of 12:12 p.m. in New York Monday, accounting for almost a 10th of the benchmark gauge’s decline at a time. Both the S&P 500 and the tech-heavy Nasdaq 100 -- which has included the company since 2013 -- each dropped about 1%.