(Reuters) – Shares of Tesla (TSLA.O) dropped nearly 7% in extended trade on Friday after the electric car maker was excluded from a list of companies being added to the S&P 500.

The decision by S&P Dow Jones Indices is a blow to Tesla investors who widely expected the company to join the benchmark stock index after a blockbuster quarterly report in July cleared a major hurdle for its potential inclusion.

S&P Dow Jones Indices said in statement it was adding online craft seller Etsy (ETSY.O), semiconductor equipment maker Teradyne (TER.O) and pharmaceutical technology company Catalent (CTLT.N) to the S&P 500, effective Sept. 21, and removing H&R Block (HRB.N), Coty (COTY.N) and Kohls (KSS.N).

Shares of Etsy jumped 6% in extended trade, Teradyne rose 2%, and Catalent added 2%.

With a market capitalization over $300 billion, Tesla is one of the most valuable companies on Wall Street, and by far the most valuable publicly listed U.S. company not included in the S&P 500.

Due to its large stock market value, adding Tesla to the S&P 500 would trigger massive demand for its shares because index funds that track the benchmark would have to bring their portfolios into line.

Reporting by Noel Randewich in San Francisco and Akanksha Rana in Bengaluru; Additional reporting by Neha Malara in Bengaluru; Editing by Leslie Adler

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