Tesla shares steady after two-day rout wipes out $200 bln in market cap

- Advertisement -


Nov 10 (Businesshala) – Shares of Tesla Inc rose on Wednesday after a two-day rally that saw the electric-car maker drop more than $200 billion in market capitalization.

- Advertisement -

Company chief Elon Musk’s poll over the weekend asked his Twitter followers if he should sell his 10% stake in the company. About 58% said they supported the sale.

- Advertisement -

Tesla shares were up 1.7% at $1,041.25 at 0940 GMT after sliding 8% so far this week.

Investors are keeping a close eye on Tesla filings with the US Securities and Exchange Commission (SEC) for any clues on Musk’s share-sale plans. SEC rules give companies four business days to report major incidents.

- Advertisement -

Four former and current Tesla board members, including Musk’s brother Kimbal Musk, filed to sell shares worth nearly $1 billion late last month, according to filings and market data.

“A CEO asking his followers whether he should sell a large number of shares is never going to be well reflected in the share price. Selling a large number by his brother,” said Craig Erlam, market analyst at Oanda. Doing so after a day only adds to the fear of investors.”

“That said, I think we need to take Musk with a pinch of salt and investors may quickly see this as an opportunity to take the plunge.”

Despite the sell-off, the stock is still up nearly 45% for the year after hitting a series of record highs in an eye-watering rally that catapulted the company into the trillion-dollar club last month. (Reporting by Shruti Shankar, Additional reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D’Silva)

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox