Why Tesla shares are tanking today
TSLA) shares are tanking today. The stock sank as low as 19% during Tuesday morning’s session. By midday, shares were trading down about 15%.
“If you’re a trader, you have to be able to stomach that volatility,” Ari Wald, Oppenheimer senior analyst, told Yahoo Finance’s The First Trade.
The stock is down about 22% over the last three sessions, and about 28% lower from its closing high on August 31.
“This is a stock that had a massive down-turn, yet again, it’s still above its 50-day average,” noted Wald.
was sidelined for inclusion in the S&P 500 (^GSPC), disappointing investors who had speculated the company would be added after posting a fourth straight quarter of GAAP profitability in July.
NKLA) and GM (GM) announced a tie-up to make the electric truck startup’s Badger, which will take on Tesla’s Cybertruck.
planned offering a week ago saying it would sell the shares “from time to time.” Since that announcement, the stock has entered into correction territory, despite a recent price target increase from BofA.
cutting its position in the electric vehicle maker citing portfolio restrictions.
On August 31st, shares began trading on a 5-for-1, split-adjusted basis, surging 12% that day.
announced earlier in August when shares were trading below $1,400. The stock soared in the weeks that followed to close at $2,213.40 on the Friday prior to the split.
during its latest quarterly results announced in July.
racing to re-rate the stock following its massive rally this year. One analyst called the stock’s valuation “mind-boggling.”
“We think it’s a leader in electric vehicles and full autonomy.”
told Yahoo Finance Tesla “is a tech company, not an automobile company.” Ives’ price target is $380, with a bull case of $700.
ne analyst told Yahoo Finance, “Tesla is detached from reality,” predicting an $87 price target by the end of 2021.
Year-to-date, Tesla is up about 330%.
@ines_ferre” data-reactid=”61″>Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre
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