On Tuesday, the US Electric car maker, Tesla, plunged more than 21%, setting a record fall for the company to encounter ever. The firm’s shares have tanked around 34% from last week, touching $330.21 from a record high of $502.49 a week ago in a mid-day session.
The fall embarks the reverse pattern for the hottest share of the year, with EV firm now remaining with a market capitalisation of $307.7 billion, down from valuation of $468.2 billion witnessed last week. Tesla, when rallying at its best, surpassed the retail pioneer the world, Walmart, which has a market capitalisation of $392 billion as of Tuesday, in valuation.
The California based company is still around 284% high since the beginning of the year, and analysts even predict a positive outlook for the company citing that firm’s cars & technology have a foundational lead over its counterparts.
The fall was due to Tesla not being included in the S&P 500 index, as announced on Friday, astonishing traders and investors who had strong bets on the company was an easy inclusion on the list.
Meanwhile, the electric vehicle venture posted to sell its newly issued stocks worth $5 billion, mixing adulteration in the share prices held by traders.
The fall was further supported by the news of Tesla rival Nikola, a fuel cell and EV startup, starting a new project on electric pickup trucks in collaborations with India’s GM (General Motors). The production is expected to begin by 2022 and will compete directly with Cybertruck, a vehicle with similar technology and operations founded by Tesla.
Apart from Tesla, other tech giants like Facebook, Amazon, and Apple also had a struggling week with each tumbling hard in recent days. In the meantime, US indices, NASDAQ & S&P 500, are both on a downtrend, a trend opposite to the earlier rally, now matching the line with Tesla. Both American indexes were on an uptrend despite the coronavirus crisis hitting hard the USA.
Record Drop For Tesla Shares After EV Firm Misses S&P 500
