Why Did Tesla Stock Decline on Wednesday?

Tesla's (NASDAQ: TSLA) stock was hit hard on Wednesday, when the session closed, it was down 4.8 percent.

In the market, the decline of the growing stocks such as Tesla did not go unnoticed.

However, in an information note published by Morgan Stanley analyst Adam Jonas in February, news about Ford's new electric car Mustang Mach-E, which received market share from Tesla, may have caused the shares to decline. Jonas estimates Tesla's market share in the electric vehicle market in the US to drop from 81 percent in February 2020 to 69 percent in February 2021, due to Ford Mustang Mach-E market share gains. That doesn't mean Tesla's electric vehicle sales are going bad, though. Jonas estimates that the general electric vehicle market grew 40 percent annually during this period. However, the main reason for the stock's fall could also be a general market downturn on Wednesday. The S&P 500 dropped 1.3 percent and the Nasdaq Composite fell 2.7 percent. We saw that many stocks that were growing, such as Tesla, also declined. Tesla stock had risen to an all-time high of $ 900.40 earlier this year. Currently the S&P 500 has dropped 7 percent so far, with the 2 percent drop. Since growth stocks are typically much more volatile than the general market, investors should expect more volatility from Tesla stocks. Why Did Tesla Stock Decline on Wednesday? Source: https://www.fool.com/ You may also be interested in this:

3 Growing Stocks That Can Make You Rich In March – Salesforce