Tesla worst single-day loss on record

Tesla worst single-day loss on record   While shares of Nikola — an electric vehicle start-up vying to take on Tesla — jumped about 29% in premarket trading, Tesla shares closed down 21.06%, making it the worst one-day loss on record. Although some investors had expected Tesla to be included this quarter, after it reported its fourth consecutive quarter of profitability in July, the S&P 500 Index Committee added e-commerce site Etsy, automatic test equipment maker Teradyne and pharmaceutical firm Catalent to the S&P 500, but stopped short of including Tesla. This exclusion from the the S&P 500 led to a drop in the stock's value, as it brought the company’s market valuation down by roughly $82 billion to $307.7 billion. 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’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 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.   You might also be interested in:

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