Luxury carmaker Aston Martin Lagonda Global Holdings Plc is set to leave the FTSE 250, a move that would cement its status as a small-cap stock and highlight its faltering turnaround. Whether Aston Martin will depart the FTSE 250 will be confirmed after the market closes on September 2, according to a statement from FTSE Russell on Tuesday. Departure from the FTSE 250 will also mean it is excluded from the FTSE 350 index — a tracker that combines the FTSE 100 and 250 benchmarks. It’ll then be considered a small-cap stock.

The news underscores the ongoing challenges faced by the British automaker, which has been grappling with financial headwinds and a sluggish recovery. The potential demotion follows a period of underperformance in the stock market, reflecting broader concerns about the company's growth prospects.

FTSE Russell's announcement comes as part of its periodic review of index constituents, which aims to ensure that the indices accurately represent the market. The final decision will be confirmed after the close of trading on September 2, with the change expected to take effect shortly thereafter.

For investors, the move signals a shift in Aston Martin's market standing, potentially affecting its visibility and attractiveness to institutional investors. The company's leadership has been working on a turnaround plan, but the latest development suggests that progress remains slow.