TSLA: Tesla Drifts Away from Mag 7 After 22% Drop This Year. Here's Who Can Swoop In.

Tesla’s place in the ultra-elite club is on thin ice as EV maker dropped out of S&P 500’s top 10, following a 22% share-price decline this year.

• Tesla stock TSLA made it into the coveted Magnificent Seven club last year. This bundle of companies with a fancy name represents the seven biggest stocks in the S&P 500 index. But this year, the EV maker has squandered the exclusive circle’s signature fabric: mega-cap valuation. Its shares are down a whopping 22% so far into 2024, making it the worst-performing stock in the S&P 500.
• The share-price drop, coupled with weak earnings contributions, yanked it out of the top 10 stocks in the broad-based index. So who’s in? Three companies are flashing a bigger valuation than Tesla and one of them could be the newest Mag 7 member. Warren Buffett’s sprawling conglomerate Berkshire Hathaway BRK.A, the world’s largest drugmaker Eli Lilly LLY, and chipmaking giant Broadcom AVGO.
• While Elon Musk is getting bad rap around alleged drug use, other Mag 7 bosses are racking up unseen gains. Mark Zuckerberg’s Meta META made history this month after it picked up over $200 billion in valuation in just one trading session. Tesla, in contrast, churned out its earnings report without laying out sales guidance – a move that shook up investor confidence.