The disappearance of Tesla's gains since the "Hertz" deal... Where did it go?
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| Elon Musk says Tesla has not signed a deal with Hertz yet. |
That deal indicated at the time the widespread adoption of its electric cars, which made the stock achieve gains of about 35%. Tesla's stockholders teared up with joy at the closing of the October deal with Hertz Global Holdings.
But tears of joy turned to tears over what was lost with the disappearance of this rise, which reached 35% at the time, as Tesla's stock fell 4.2% on Monday, reaching the level of $ 893.39, according to Bloomberg Agency.
20 years after the first... Will a new "internet" bubble burst? Stocks at risk
This put the shares at the bottom of the list at the same level they were at close of trading just before the unveiling of the $4.2 billion Hertz deal on October 25.
Big declines in Tesla stock
The stock price, which peaked on November 4, is down 21% in December and is preparing for its worst month since the pandemic-fuelled crash in March 2020.
Hertz's order for 100,000 cars drove up the price of Elon Musk's Tesla shares, pushing the company's valuation well above the $1 trillion mark.
However; This rally soon began to fluctuate after Musk began selling part of his stake in the company. Tesla's market capitalization is currently around $905 billion.
In the first week of this month, American billionaire Elon Musk sold another amount of his shares in his electric car maker Tesla, worth $1.01 billion.
The latest step in the scheme of the world's richest man towards achieving his goal of selling 10% of his stake in the giant electric car company.
Elon Musk sells another amount of his shares in Tesla .. Why?
Elon Musk sold about 934,000 shares during the first week of December, bringing the number of shares sold by Musk to 10.1 million shares for $ 10.9 billion, since Musk polled his followers on Twitter last month regarding the decision to sell 10% of his shares in the company. .
Last November, Elon Musk, the owner of Tesla and SpaceX, organized a vote on his Twitter page, in which he asked his followers whether he would sell part of his stake in Tesla to meet his tax obligations or not? Musk pledged to abide by the outcome of the vote, whatever it is.
heavy shadows
A broad market downturn weighed on Tesla on Monday. Renewable energy companies such as solar and other electric car makers were broadly underperformed after Senator Joe Manchin said he would not support President Joe Biden's spending plan.
The share of "Nicola" company decreased by 8.8%, while the share of "Rivian Automotive" decreased by about 9.5%.
Shares of the "Work Horse" group fell by up to 10%, and shares of "Lordstown Motors" decreased by 9.4%.
US stocks live at the mercy of excessive speculation and exaggerated price assessments, which heralds an Internet bubble like the one that occurred in the 1990s.
According to analysts at Bank of America, the current market environment resembles the Internet bubble of 2000, due to signs of excessive speculation and high valuations in the stock market.
Analysts added that the current market environment is very similar to what it was before the burst of the Internet bubble in the late 1990s, when stocks plummeted starting in 2001.
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Some signs in the market today are worse than they were in 2001, analysts at Bank of America said, adding that signs of speculation are evident amid "a growing acceptance of the unthinkable" among investors.