Tesla falls 21%, worst single-day loss in its history
Tesla shares tumbled Tuesday, after Elon Musk’s electric vehicle maker was left out of the S&P 500 by the committee that decides on new additions to the index.
Tesla shares closed down 21.06%, making it the worst one-day loss on record. Tuesday’s drop brought the company’s market valuation down by roughly $82 billion to $307.7 billion.
The stock has been on a tear this year, having risen around 300%, and the company is now worth more than some of the world’s largest automakers, including Toyota and Volkswagen.
On Friday, the S&P 500 Index Committee decided to add e-commerce site Etsy, automatic test equipment maker Teradyne and pharmaceutical firm Catalent to the S&P 500, but stopped short of including Tesla.
Some investors had expected Tesla to be included this quarter, after it reported its fourth consecutive quarter of profitability in July.
Tesla stock dropped more than 7% after hours on Friday following the news. U.S. markets were closed Monday because of Labor Day.
Tesla’s move lower Tuesday also follows a major reversal in the big technology stocks last week, amid fears that valuations had reached unsustainable levels.
Japanese tech investment juggernaut SoftBank was reportedly the mystery “Nasdaq whale” that bought billions of dollars in call options in Big Tech names, including Tesla, Amazon, Microsoft and Netflix, potentially driving up valuations. SoftBank declined to comment on the reports.
Tesla split its stock 5-to-1 at the end of last month, a move that saw its value climb significantly in the run-up despite having no fundamental impact on the stock.
But it fell a few days later after Baillie Gifford, its largest outside shareholder, cut its stake in the company. Baillie Gifford said the reduction in ownership was merely down to portfolio restrictions.
Tesla said Tuesday it completed its sale of $5 billion in new stock. The firm closed out the sale by Friday, according to a regulatory filing, just three days after announcing plans to sell the additional shares on Sept. 1.
Meanwhile, Nikola — an electric vehicle start-up vying to take on Tesla — revealed on Tuesday that General Motors had agreed to take an 11% stake in the firm.
As part of the deal, GM will produce Nikola’s hydrogen fuel cell electric pickup truck, the Badger, by the end of 2022. Shares of Nikola jumped about 29% in premarket trading while GM jumped 6%.
The already vast fortunes of America’s 643 billionaires have soared by an average of 29% since the start of the coronavirus pandemic, which has at the same time laid waste to tens of millions of jobs around the world. The richest of the superrich have benefited by $845bn , according to a report by a US progressive thinktank, the Institute for Policy Studies. The report calculated that 643 billionaires had racked up $845bn in collective wealth gains since 18 March.
Stock markets have lost some of their spectacular gains made over the past several months, as investors sold off high-flying tech companies and worried about the continuing crisis in the US jobs market.
Elon Musk has soared through the global wealth league this year and become the world’s fourth richest person, after a boom in the share price of the Tesla car company he co-founded and part-owns increased his wealth by more than $13.3bn in two days of trading.
Im Fall Wirecard gibt es einen weiteren ungeheuerlichen Verdacht: Seit Jahresbeginn und somit noch deutlich vor der Insolvenz sollen Führungskräfte hohe Millionensummen abgezogen haben.