The Tesla stock has lost roughly a third of its value in just over a week. This is the company’s largest loss since it went public during the second bear market of 2020. Schaeffer’s Investment Research Review experts explained that Tesla investors have been on a roller coaster of ups and downs over the past couple of weeks, with a massive climb, a bounce, and a serious drop.
Tesla is the most iconic electric vehicle battery maker in the industry. The Schaeffer’s Investment Research Review team explained that Tesla’s stock took a massive 21.1 percent drop on Tuesday, Sept. 8, 2020. The previous record drop was 19.3 percent in mid-January of 2012.
“Tesla stock has now dropped a massive 33.7 percent since closing at a record high just one week ago,” Schaeffer’s Investment Research Review experts said. “The selloff has begun.”
Schaeffer’s Investment Research Review experts explained that Tesla offered a $5 billion stock offering following the major drop last week and a major shareholder lowered its stake, signaling difficult times for Tesla investors. On Friday, Sept. 11, 2020, the stock dropped another nearly 9 percent mid-day to make a brief upturn and close up almost 3 percent. This terminated the stock’s three-day-long losing streak.
“Another major downturn for Tesla stock is that the S&P Dow Jones Indices did not add Tesla’s stock to the S&P 500 index,” Schaeffer’s Investment Research Review experts said. “This was unexpected among major industry analysts and it won’t be a surprise if the stock plummets again due to this.”
Schaeffer’s Investment Research Review experts explained that Tesla being added to the S&P 500 Index was expected to be a guarantee. Tesla not being listed shocked investors, increasing their uncertainty in the company’s stock. Schaeffer’s Investment Research Review experts added that Tesla not being added to the S&P 500 Index may display expectations of the stock dropping even farther, but it remains unclear today as to why the company was not added.
“Despite all of the recent uncertainty and a major stock market plummet, we expect the Tesla stock to be added to the S&P 500 Index eventually,” Schaeffer’s Investment Research Review finished. “The stock took a major tumble last week, but it is still up an astronomical 294.7 percent this year so far. It won’t be long before we see Tesla listed on the S&P 500 Index also. It’s certainly not time to count Tesla out.”