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Tesla shares with price slide: profit taking after record hunt

2020-09-03T11:21:10.955Z

Tesla's stock split briefly drove the stock to a record high of $ 500. After the price had quintupled within a short period of time, investors are now taking profits and switching favorites.



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Profit-taking: The recent declines in Tesla stock shouldn't worry Elon Musk too much

Photo: LUCY NICHOLSON / REUTERS

The price rally of the Tesla share had become scary to some investors in the past few weeks.

Since the beginning of the year, the market value of the electric car manufacturer controlled by Elon Musk had increased more than fivefold.

The 1: 5 share split that was completed on September 1 and the approaching inclusion in the S&P 500 had pushed the share to ever new heights - Tesla is now worth five times as much on the stock exchange as the world's largest car maker Volkswagen.

But since the completion of the stock split, the first Tesla shareholders have taken profits and apparently bring money to safety.

Since the beginning of this week, the Tesla share has accelerated its downward trend and lost around 15 percent within three days.

While the paper was still trading at $ 502 on Tuesday, Tesla shares should drop below the $ 430 mark at the start of trading on Thursday.

This, too, is still a considerable rating, after the month-long price rally one can only speak of a price setback.

At the current level, the Tesla share is now again interesting for shortsellers who bet on falling prices: However, short sellers had repeatedly burned their fingers in the past.

The price losses at Tesla and other investor favorites during the Corona period are accompanied by price gains at companies that have been on the losing side in recent months.

For example, companies from the aviation industry and tourism gained on Thursday, and on Wednesday the beverage manufacturer Coca-Cola was the biggest winner in the Dow Jones.

After the price rally of corona profiteers such as Tesla, Amazon, Facebook, Nvidia or Moderna, investors are now apparently shifting into classic industrial stocks in the hope of benefiting from a recovery in the global economy.

The recent price losses have less to do with a new skepticism towards Tesla.

The company has been riding a wave of success for months and has also increased its sales significantly during the Corona crisis.

But the temptation to put some of the recent Tesla price gains on the dry side and look for opportunities with the stragglers.

In Germany, too, Elon Musk still has a lot to do after his visit to Germany this week.

The US electric car maker wants to start producing around 500,000 vehicles a year in the new plant in Grünheide from next summer, with around 12,000 jobs planned.

Musk wants to hold talks about cooperation with the vaccine manufacturer Curevac.

It was only at the weekend that the bustling Tesla boss presented a technology to directly connect smartphones and the human brain.

In terms of market value, Tesla is far ahead of all other automakers: The three German automakers Volkswagen ($ 88 billion market value), Daimler ($ 55 billion) and BMW ($ 48 billion) are worth around 191 billion dollars on the stock market - Tesla alone is coming with 420 billion dollars to more than double.

la / dpa / Reuters

Source: spiegel

All news articles on 2020-09-03

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