The recent slump in Tesla (TSLA-Q) stock threatens its place in an elite grouping of companies that powered a surge in U.S. markets in recent years, experts said, while triggering chatter of an AI-linked replacement for the electric automaker.
The so-called “Magnificent Seven” – Apple (AAPL-Q), Microsoft (MSFT-Q), Amazon (AMZN-Q), Alphabet (GOOGL-Q), Meta Platforms (META-Q), Nvidia (NVDA-Q) and Tesla – staged a blistering rally last year and pushed Wall Street to record highs.
The group holds a collective weight of 28.6% in the S&P 500, up from 27.8% at the end of 2023. That is close to the highest weight ever for that group of stocks, according to LSEG data.
A successor to Tesla will likely be one that would be able to monetize the booming demand for artificial intelligence, a dozen institutional investors told Reuters.
“It’s Magnificent 6,” said Brandon Michael, senior investment analyst at ABC Funds.
“Tesla has a lot of…
