Tesla & Co have been downset by more than 21 percent. The correction of an overvalued car market has been also hit, Tesla. Good times for car manufacture could be over for now.
The corona pandemic is, in reality, an economic crisis that has been build on top of the 2008 crises.
Electric car maker and automobile giant Tesla Inc (NASDAQ: TSLA) witnessed a massive rally this year with its stock price surging over 400% during H1 2020. However, since the beginning of September, TSLA stock has entered a deep correction. On Tuesday, Tesla share price tanked a whopping 21% registering its worst single-day loss in history. Tuesday fall of Tesla stock alone eroded a massive $88 billion from the company’s valuation. Since September 1, the TSLA stock price has tanked more than 350% losing over $150 billion in market cap.
Tuesday’s crash in TSLA stock followed after the S&P 500 Index Committee called short of adding Tesla to the index. With Tesla reporting its fourth-consecutive profits in Q2 2020, investors have been betting big on TSLA’s entry to the S&P 500. Last Friday, the S&P 500 Index committee decided to add Etsy, Catalent, and Teradyne to the index. However, there’s was no word about Tesla’s inclusion. In an email to MarketWatch, Wedbush analyst Dan Ives wrote:
“Tesla not getting into the S&P 500 club is a head scratcher and the stock will likely be down for the indexing implications”.