Most of the move was after hours when this report was released. Tesla was only down .6% during the day, despite the higher alpha and the market being down 2%.
> But Tesla’s shares have declined more than 40 percent since April 4 — a much steeper fall than the broad market, vaporizing more than $400 billion in stock market value.
With about five minutes remaining in the trading day, the company posted a statement on its official website under the headline: “Announcing the Tesla Model W.”
In the following minute, the stock jumped about $1.50 or about 0.75 percent from its level the moment before to as high as $188.50.
Nearly 400,000 shares traded in that time, and it was the heaviest one minute of trading volume in the stock since the opening 60 seconds of trading on Feb 12.
Tesla shares quickly retraced most of that upward move and ended the session at $187.59, down 0.63 percent from Tuesday’s close.
I tried to find an explanation for the drop. Best I could do was this from Reuters:
"Tesla shares tumbled 9.74%, its biggest one-day percentage drop since April 20, after the electric-vehicle maker reported a drop in its second-quarter gross margins to a four-year low and CEO Elon Musk hinted at more price cuts."
Judging by the stock price today, I think that may be exactly what happened, but only just a bit. Stock is down 8%, some investors have decided to get out of tesla.
What surprises me about this, given the sell pressure of the self-inflicted pain from Musk, is that Tesla is down sure, but not by that much. I guess the issue is it's behaving like a tech stock, but it's not. It's a car company that used to employ a guy who said he could deliver self-driving.
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