Shares of Tesla Inc. suffered Tuesday their biggest loss since going public to kick off the second bear market this year, as investors rode a roller coaster over the past week that started with a climb to a record close and was followed by a stock offering, a big bounce, and then an S&P 500 index snubbing.
The stock’s selloff kicked off last Tuesday after the electric vehicle maker disclosed a $5 billion stock offering and a large shareholder reduced its stake. On Friday, the stock had plunged as much as 8.6% intraday, before pulling a sharp U-turn to close up 2.8%, to snap a 3-day losing streak, after the company disclosed stock trades by a number of insiders.
“Tesla not getting into the S&P 500 club is a head scratcher and the stock will likely be down for the indexing implications,” Wedbush analyst Dan Ives said in an email to MarketWatch, as reported by MarketWatch’s Jeremy Owens.“With an estimated ~$4.5 [trillion] of assets indexed to the S&P 500, we think shares were reflecting expectations for substantial passive inflows,” Baird analyst Ben Kallo wrote in a research note.
It took just two days for the stock to enter correction territory, as on Sept. 2 it closed 10.2% below its Aug. 31 record. Many would view a close on Tuesday at or below $398.65 as marking the beginning of a bear market.
The use of “value” in the header is misleading. Fake news.
Battery day won't do anything anymore. $TSLA is done
Hell week
Dead battery
It's in a nice point of entry
Fraud is about to come to light
So you’re saying its on sale? Perfect
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Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »