On the subject of Tesla, let's talk about one of the biggest S&P 500 inclusion busts of all time: Yahoo $YHOO. https://www.ally.com/do-it-right/trends/teslas-new-street-cred-the-sp-500/

Remember Yahoo? It was a search engine before we were all saying “I’ll just Google it”.

It was actually my parents’ home page back in high school

Well, Yahoo got the nod to join the S&P 500 in November 1999.

Investors were so stoked that Yahoo's shares soared 50% in six trading days (the S&P 500 was up just 1% over that period).

Yahoo officially joined the S&P 500 at market close on December 7, 1999.

The day after, Yahoo shares dropped 8%. Oof.

BUT that’s not the end of the story. You thought that was it?

In the first month, Yahoo shares bounced back and soared 27%.

We entered a new century.

We survived Y2K.

http://Pets.com  IPOed.

The internet trade was on .

Everything was going great (with some stumbles)...until Valentine’s Day 2000.

Yahoo gets hit by a DDoS attack and goes down for a few hours. The shares drop 52% (!!!) in one day

Yahoo never really recovers that drop, and it hobbles along for a few weeks.

Then, the tech bubble burst in March 2000.

Yahoo drops another 85% from March 27, 2000 through the end of the year.