Tesla suffers a severe stock market correction after one of its main shareholders cuts its stake
Yesterday, Tesla shares experienced the worst drop in the stock market in a single day since March, closing the session with a decline of 5.83% to $447.37, although they fell 15% to midmorning. These drops came after one of its largest shareholders, Baillie Gifford, announced during a presentation that it had cut its stake in the company from 7.67% to 4.25%.
Source: Admiral Markets MetaTrader 5. TSLA Daily Chart. Data range: April 22, 2019 to September 3, 2020. Accessed on September 3, 10.30am. - Please note: Past performance is not a reliable indicator of future results.
These falls interrupt Tesla's bullish rally that began in mid-March, after the general collapse in the markets due to the confinements as a result of the coronavirus pandemic. In August alone, the company rose 74% and accumulated a 495% advance on the NASDAQ until August 31, exceeding $2,000 per share. In the last five years it has increased its stock market value by more than 1,000%.
This escalation led Elon Musk's company to carry out a stock split on August 31, in a ratio of 5 to 1, that is, it divided each share into five, to lower its price. Last Tuesday, in addition, Musk announced a capital increase of 5 billion dollars, a decision that could have aggravated the latest falls in the stock market.
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