Tesla bounces back as electric car stocks rally

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Nov 16 (Businesshala) – Tesla stock bounced back from its recent sell-off in a rally in electric vehicle stocks on Tuesday, a day after Chief Executive Elon Musk revealed he sold $930 million worth of his company’s shares Huh.

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In a sector boom that also included Rivian Automotive (RIVN.O) and Lucid Group (LCID.O), Tesla rose nearly 3% to nearly $1,040, leaving its market capitalization up before Musk began selling shares last week. reduced by about $187 billion.

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Rivian’s stock rose 10% since its initial public offering last Wednesday with the EV maker putting its market capitalization at $140 billion as of mid-day, according to Volkswagen AG (VOWG_p.DE). Outnumbered by about $1 billion. The Irvine, California-based company is the third most valuable car maker in the world.

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Lucid increased 15% after saying that reservations for its cars increased to 13,000 in the third quarter and said it was confident it would produce 20,000 of its upcoming Lucid Air sedan in 2022.

Musk sold 934,091 shares on Monday after exercising options to buy 2.1 million shares at $6.24 each, according to the company’s filings.

In the past week, Musk has sold nearly 7.3 million shares of Tesla for $7.8 billion. Those sales fulfilled nearly half of its pledge on Twitter to sell its 10% stake in Tesla.

Musk began selling shares after the idea was brought up in a Twitter poll last week.

Tesla’s stock has risen more than 150% over the past 12 months, with demand for the electric carmaker on Wall Street buoyed.

“There is still a lot of interest because I still think investors are seeing this as a phase out and the downsides as an opportunity,” said Craig Erlam, senior market economist at OANDA. “If you ask me where the stock price will be six months from now, 12 months from now? I’d say it’s more likely to be 20% higher than it is down 20%.”

Reporting by Noel Randwich Editing by Nick Ziminsky

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