Tesla Inc’s stock stretched losses on Monday and now after this it has cost Tesla losses of about one-third from its January record high, making it the third time in approximately a year that the electric car maker’s shares have dipped down that dramatically.
In recent weeks with rising interest rates and investors worried about scraped high-denomination stocks, Tesla’s market capitalization has decreased by about $ 300 billion, to a record high of $ 550 billion since January 26. Now Tesla is back behind Facebook Inc which it overtook last December after entering S&P 500.
Tesla shares dipped more than 4% on Monday and the difference between this dip and the record high on 26th January is about 35%. ARK Innovation ETF has 10% of its assets invested in Tesla also fell by 6%.
Since February 12th, there has been a fall in technology and other growth stocks widely, when Nasdaq closed at its most recent record high. Though, Tesla’s decline during that period has been much deeper than other Wall Street giants.
Tesla’s growth in recent months lies in the expectation that it will expand its car production quickly and profitably. The stock’s latest dips are followed by a tweet from the chief executive officer of Tesla, Elon Musk. On Saturday, he tweeted that an update on Tesla’s planned Cybertruck pickup would be provided likely in the second quarter. Musk disclosed Cybertruck in 2019.
The most unpredictable of Wall Street’s biggest companies, Tesla’s shares have fallen like the current selloff or greater than that twice since early 2020. The stock slipped more than 60% in February and March last year when the entire world was hit by the coronavirus pandemic which also had a great impact on the global markets. After reaching new highs in the month of August, the shares declined 33% before it could recommence its lightning rise.
From the 12th of February’s Nasdaq’s apex rise, Tesla is now fallen nearly 30%, reducing its profit to around 43% in the last six months. Apple Inc is also down by nearly 13%, and so is Amazon Inc, Microsoft Corp, and Facebook Inc, which are down by 10%.
On February 8th, Tesla announced buying $ 1.5 billion worth of bitcoins, since then the stocks have seen a steady fall, while on the other hand, the price of bitcoin has risen by more than 10%. Tesla mentioned that it bought bitcoin during January.
As per the Reuters calculation, if Tesla, let’s assume bought it at a mid-point price of about $ 45,000, the amount it invested could now be around $ 1.7 billion.
