Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Illustration: Sarah Grillo / Axios
Tesla has a market value of nearly $48 billion, making it one of the 150 most valuable companies in America. Yet Nomura Instinet analyst Romit Shah today put out research saying that Tesla is "no longer investable."
The reason: What Shah refers to as "the erratic behavior of Elon Musk."
Shah says that Tesla could be a good bet with a different leader, but chaos monkey CEOs aren't the only reason that securities are sometimes considered uninvestable.
- The S&P 500 won't include unprofitable companies, which is why Tesla isn't in the index.
- Memories are still raw when it comes to synthetic derivatives, which no one really understood and which therefore no one should have been investing in before the financial crisis.
- Similar arguments can be and often are made about cryptocurrencies, today.
- Environmental, social, and governance considerations can also make a stock uninvestable.
- Many investors won't touch gun manufacturers, for instance, or tobacco companies, or companies like Snap which give shareholders no voting rights.