Tesla’s shares extend selloff after Musk tweets

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(Businesshala) – Tesla Inc stock extended its recent selloff on Monday as investors reacted to CEO Elon Musk’s recent share sale for a combined $6.9 billion as well as his most recent tweets.

FILE PHOTO: The logo of car maker Tesla is seen at a dealership in London, Britain May 14, 2021. Businesshala/Matthew Childs/File photo

Tesla stock ended nearly 2% lower at $1,013.39 before Musk’s shares began selling last week, reducing the company’s market capitalization by about $207 billion.

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The latest stock drop follows Sunday’s brawl between Musk and Bernie Sanders, the world’s richest man on Twitter, after a US senator demanded that the wealthy pay their “fair share” of taxes.

During Monday’s session, Tesla traded as low as $978.60, pushing its stock market cap below the $1 trillion mark on an intraday basis for the second time in four sessions. Tesla first hit the $1 trillion mark late last month.

“Tesla shares are sinking following a sell-off based on a Twitter poll last week. And Musk’s Sunday tweet ridiculing a senior politician could put pressure on the stock in the coming weeks,” said Kunal Sawhney, CEO of equity research firm Culkin Group.

“By selling billions of dollars worth of shares, Elon Musk is likely to earn a tax bill of about $15 billion.”

Musk sold 6.36 million shares of Tesla after the idea was brought up in a Twitter poll last week Here, It will need to offload about 10 million more to meet its pledge to sell its 10% stake in the electric-vehicle maker.

Tesla’s stock has risen more than 140% over the past 12 months, quenching the thirst of electric vehicle makers on Wall Street. The stock’s recent sell-off is at its lowest level since late October.

Also on Monday, Rivian Automotive jumped nearly 15%, with the Amazon.com-backed EV maker now up nearly 90% since its initial public offering last week.

Reflecting the enthusiasm of retail investors, Tesla and Rivian were Fidelity’s most-traded stocks Here Online brokerage with more than two buy orders for every sell order.

chip supply restrictions

oysters on saturday bit.ly/3ChQVIU Asked a Twitter user to “not read too much” comments about PepsiCo CEO Ramon Laguarta’s expectation of the first deliveries of Tesla Semi trucks in the fourth quarter.

“As publicly noted, Tesla chip supply is short term and cell supply constrained long term,” Musk tweeted. “Unless both the constraints are removed, it is not possible to produce additional vehicles.”

Tesla has weathered the pandemic and the global supply-chain crisis better than rivals, posting record revenue for the fifth quarter in a row.

Meanwhile, investor Michael Burry, of “The Big Short” fame, took aim again at Musk, tweeting Here, “@elonmusk borrowed 88.3 million shares, sold all his mansion, moved to Texas, and asking @BernieSanders if he should sell more stock. He doesn’t need the cash. He’s just selling $TSLA wants.”

Reporting by Shruti Shankar and Subrata Patnaik in Bengaluru Additional reporting by Anisha Sarkar in Bengaluru, Saikat Chatterjee in London, Ira Iosbashvili in New York and Noel Randevich in Oakland, Calif. Editing by Anil de Silva and Matthew Lewis

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