Tesla Rebounds Stronger, and Outperforms Rivals
After a series of setbacks from playing in the red, Tesla finally clinches its fifth day of good performance in a healthy trading day.
The Elon-Musk owned firm records an all-around session in the stock market with an impressive 7.18% per share hi
Last week, it recorded a sharp 10% blow from a series of tumultuous events. The biggest puller is the firm’s failed attempt to be included in the S&P 500.
For months on end, investors have been waiting to pop the champagne to see Tesla in the coveted roster.
However, the Wall Street index named three new inclusions to its list from pharmaceutical and e-commerce business but not the EV manufacturer.
This happened even when the firm recorded four successive quarters of profitability—one of the crucial requirements of Standard&Poor’s.
The event caused a trading frenzy in the stock market, where investors were quick to pull out their shares from the firm.
Some strategists predicted that should the sell-off continues, the market could develop what is referred to as “herd mentality.”
Such could result in “massive selling” and will pose negative repercussions to Tesla’s market value.
Tesla Updates a Brighter Future Ahead
After the series of setbacks, the Tesla updates a better-than-expected rebound in the market. The trading volume alone eclipsed its 50-day average volume of 80.1 million after hitting 95.6 million.
Overall, the clean energy company outperformed the majority of its head-to-head competitors at the stock market close.
The Ford Motor Co fell by 1.2% to $7.04 while General Motors Co experienced a slight jump at 1.28%. It now trades at $31.58 per share.
Similarly, Chinese automobile manufacturer NIO rose 2.46% to $19.19.
Meanwhile, all other major indices traded in the green. The NASDAQ Composite Index rose by 1.21% while the Dow Jones Industrial Index recorded a modest 0.01% growth.
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