Shares of electric-car maker Tesla dropped in more than 20% during Wednesday trading. In the afternoon, market experienced slight corrections.
Four hours during Wednesday trading represented the worst one-day drop since 2012. A paradoxical situation happened – while American share indexes rose (e.g. Dow Jones at least in 1,7%), Tesla shares sharply dropped after having reached the level of $960. Their price stopped tightly above $710 and shares surged in almost $30 on Wednesday afternoon.
Yet, Tesla ended its Wednesday trading 12% lower compared to Tuesday stock’s closing price. Ganaccord Genuidy rated Tesla rather to “sell” than “buy,” and highlighted that due to electrifying stock surge of American car maker shares, there’s a risk of delivering profit.
Even though it may seem irrelevant, stock fall was further affected by coronavirus epidemic, as due to coronavirus threat Chinese authorities decided to close down Tesla’s factories in Shanghai. And even though recently published results of 2019 fourth quarter were better than investors expected, it didn’t help Tesla shares either.