Tesla slips again at 560 dollars… 36% plunge from the highest in January
$300 billion decrease in market cap compared to the peak
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The share price of Tesla, an electric car maker in the US, slipped again.
Tesla closed at $563.00 on the 8th (local time) on the New York Stock Exchange, down 5.84%.
Tesla fell below $600 on the 5th, the last trading day of last week, and the stock price plummeted without overcoming the sell-off on the first trading day of the week.
Compared to when the stock price peaked at $883.09 on January 26, it plunged 36%.
Reuters reported that investors are selling high-value stocks such as Tesla due to concerns about rising interest rates.
Dan Ives, an analyst at Weedbush Securities, said investors have “sold off EV stocks over the past month without conviction.” “Tesla is a typical weakening of EVs.”
Amid growing expectations for a recovery in the US economy, large tech stocks, which led the New York Stock Market last year, are continuing to decline. On that day, the Dow Jones 30 Industrial Average of the New York Stock Market closed at 31,802.44, up 306.14 points (0.97%) from the battlefield.
Over the weekend, as the US Senate processed an additional $1.9 trillion (about 2,160 trillion won) stimulus bill, it once soared more than 650 points, rewriting the new high point on an intraday basis. However, the technology-oriented NASDAQ index plunged 310.99 points (2.41%) to close at 12,609.16. The Standard & Poor’s (S&P) 500 index also closed at 3,821.35, down 20.59 points (0.54%).
Economic media such as the Wall Street Journal (WSJ) and Market Watch reported that Nasdaq has entered a correctional zone, falling more than 10% from its recent high. This scale adjustment has been in half a year since the beginning of September last year.
Major technology stocks, which supported the stock market despite the novel coronavirus infection (Corona 19) pandemic, showed a sharp decline at the same time. On that day, Apple, the “leader” of the New York Stock Market, plunged 4.2% to record a new lowest price in the last three months, and Tesla fell 5.8% to the mid-$500 per share. Netflix fell 4.5%, Facebook fell 3.4%, and Alphabet (Google parent company) fell 4.0%.
Over the past month, Apple has plunged 15%, Tesla 34%, and Zoom Video 24%, respectively.
Foreign media diagnosed that there was a sale of US Treasury bonds behind the sharp decline in NASDAQ. Investors are seeing less interest in growth stocks, which have increased financing costs as the 10-year Treasury bond yield is approaching 1.6%. “What’s happening in the bond market right now is a major market factor,” Sammy Tsar, chief economist at Lombard Audi, told WSJ. “The US technology sector is struggling with normalizing capital costs.”
As expectations for a real economic recovery have risen due to massive additional stimulus and vaccines, the WSJ reported that fund managers are shifting funds from US government bonds and technology stocks to banks and energy stocks, which are likely to rebound. On the other hand, communication technology companies and online shopping companies, which enjoyed the special effects of the Corona 19 pandemic, are expected to slow their growth due to the shutdown.
/ Reporter Kihyuk Kim [email protected]
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