Tesla Motors Lost 21%, Facing Its Worst Trading Day Ever
After its first stock split since its initial public offering ten years ago, stocks of Tesla Motors recorded nothing but setbacks.
This is contrary to the widespread expectations that stocks would record bulls after appealing to regular traders.
The stocks initially jumped by 12% after the offering but later traded in the red for four consecutive days last week.
As if adding an insult to the injury, the S&P 500 declined its inclusion to the index. It said the online marketplace Etsy, robotics-centered Teradyne, and pharmaceutical company Catalent but not the Elon Musk-owned firm.
The latest update, much to both analysts and investors’ dismay, sent them to sell their shares of the EV frontrunner.
Due to the sudden shift, Tesla fell by 21 percent—the worst trading date in its entire run.
After it recorded its fourth consecutive quarter of profitability in July, one of S&P’s requirement’s to consider an inclusion. The market started hoarding Tesla Motors shares, sending prices up.
Now that the champagne failed to pop, traders flee with their money as fast as a Tesla car could get.
Tesla’s Rebound, Out of Sight
After Tesla updates of a 21% fall, the company’s market valuation instantaneously dropped by $82 billion. It is now valued at $307.7 billion.
So far, in total, the firm’s shares are down 34% since the past week. The reversal comes to a surprise as figures recorded last month yield nothing but good news for the tech firm.
Consequently, its head-to-head competitor in the field, Nikola, secured a partnership with General Motors to start production of electric pickup trucks by 2022.
This new venture will directly compete with Elon Musk’s latest creation called “Cybertruck,” which will launch next year.
Cybertruck has an unconventional design car enthusiasts say that can survive even an apocalypse or any similar circumstance.
At present, investors can only hope that Tesla Motors would be as sturdy as its latest creation and will be able to survive even the most substantial microeconomic headwinds.
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