From Nasdaq, Inc.:

The S&P 500 index saw a huge gain of 24.3% last year, largely driven by the performance of the “Magnificent Seven,” a group of high-performing stocks with a combined market value of $12.7 trillion. These companies boasted impressive returns in 2023, but Tesla’s stock took a serious hit in January due to disappointing financials for the fourth quarter.

CNBC’s Jim Cramer suggested that Tesla should be removed from the Magnificent Seven, dubbed it the “Super Six,” and advised Tesla’s long-term removal. While Tesla’s primary business of electric vehicles has faced challenges and decreased market share, there have been announcements of a lower-cost EV coming to the market, and leading AI technology could transform the company’s future.

Despite setbacks in its electric vehicle sales, Tesla is a leader in AI and autonomous self-driving software. The company’s advanced technology, combined with plans for a humanoid robot, could have a significant impact on the broader economy. This is why Tesla should still have a place in the Magnificent Seven.

The Magnificent Seven saw major success in 2023 thanks in part to advanced technology and AI. While Tesla may face short-term challenges, its technology positions it among the high-performing companies. Where to invest $1,000 right now–our analyst team has a stock tip, it can pay to listen as their newsletter has more than tripled the market* Stock Advisor returns as of January 22, 2024.



Read more: Did the “Magnificent Seven” Just Become the “Super Six?”