Posted on June 14, 2023
In a move that mirrors analyst predictions, Rivian, the electric vehicle manufacturer, is set to be removed from the Nasdaq-100 Index, a roster of the 100 largest non-financial companies listed on the exchange. This development comes following the company's failure to achieve a weightage of at least 0.1% for two consecutive months, a benchmark necessary for retaining a position in the index.
JP Morgan analyst Min Moon predicted this outcome a fortnight ago, observing that Rivian's weightage had dropped below the critical 0.1% threshold on April 28 and May 31. He also correctly foresaw the company set to take Rivian's place in the Nasdaq-100 Index: On Semiconductor Corp. (ON), which was ranked as the most eligible company.
Rivian's removal will extend to other Nasdaq indexes as well, including the Nasdaq-100 ESG Index, the Nasdaq-100 Equal-Weighted Index, and the Nasdaq-100 Ex-Tech Sector Index. This reconstitution will occur on Tuesday, June 20, 2023.
Surprisingly, despite the news of its removal, Rivian's stock experienced a nearly 9% rise during Tuesday's trading session, coinciding with a broader upward trend in several other electric vehicle stocks.
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