During Monday’s trading session, Tesla’s market value fell below the $1 trillion mark.
New Delhi: Tesla Inc shares extended their recent sell-off on Monday as investors reacted to CEO Elon Musk’s recent $6.9 billion total stock sale, as well as the company’s most recent tweets. grandfather.
Shares of Tesla fell nearly 2% at $1,013.39, bringing the company’s market capitalization down about $207 billion since before Musk started selling shares last week.
The latest stock drop comes after a spat Sunday on Twitter between Musk, the world’s richest man, and Bernie Sanders after a US senator demanded that the wealthy pay a “fair percentage.” their taxes.
In Monday’s trading session, Tesla traded as low as $978.60, pushing its share market value below the $1 trillion mark on the day for the second time in four sessions. Tesla first hit the $1 trillion mark late last month.
“Tesla stock has sunk after selling based on a Twitter poll last week,” said Kunal Sawhney, CEO of equity research firm Kalkine Group. Musk quoted a senior politician that could put more pressure on stocks in the coming weeks.
“By selling off billions of dollars worth of stock, Elon Musk has the potential to accrue about $15 billion in tax bills.”
Musk sold 6.36 million Tesla shares last week after pitching the idea in a Twitter poll. He will need to drop about 10 million more to fulfill his pledge to sell his 10% stake in the electric vehicle maker.
Fueled by Wall Street’s thirst for electric vehicle makers, Tesla’s stock has surged more than 140 percent in the past 12 months. The recent sell-off sent stocks to their lowest levels since late October.
Also on Monday, Rivian Automotive was up nearly 15%, with the Amazon.com-backed electric vehicle maker now up about 90% since its initial public offering last week.
Reflecting the enthusiasm of retail investors, Tesla and Rivian were the most-traded stocks on Fidelity’s online brokerage, with more than two buy orders for each sell order.
Limited chip supply
On Saturday, Musk asked a Twitter user not to “read too much” a comment by PepsiCo CEO Ramon Laguarta about the expected delivery of the first Tesla Semi truck in the fourth quarter.
“As publicly mentioned, Tesla is constrained by short-term chip supply and long-term cell supply,” Musk tweeted. “It is not possible to produce more vehicles until both limitations are resolved.”
Tesla weathered the pandemic and global supply chain crisis better than its rivals, posting record revenue for the fifth straight quarter.
Meanwhile, famous investor Michael Burry of “The Big Short” took aim at Musk when tweeting: “@elonmusk borrowed 88.3 million shares, sold all of his mansions, moved to Texas and is asking @BernieSanders if he should sell more stock. He doesn’t need cash. He just wants to sell $TSLA.”
(This story has not been edited by NDTV staff and was automatically generated from the feed provided.)
