Tesla’s major stock reversal over the last week is an interesting study in how quickly things can switch up in a volatile market like this one.
Despite some controversies over coronavirus-era operations and more, Tesla had been spiking through the roof, moving from around $500 to over $2200 over the past few months.
Over the last week, though, the stock has lost a full one third of its value.
Although there has been some reversal in terms of a slight rally over the last 24 hours, a move of about 170 points erases so much of the stock’s previous value that short-term traders over this week have no doubt been burned quite severely.
What makes this all the more confusing is a 5-1 stock split that happened after the major rally. Ironically, Tesla conducted the stock split partly because they wanted to offer lower per-share entrance costs – but then, the stock’s decline would have taken care of that quite handily, to some extent.
In other words, if the $498 high represented on Tesla’s current chart came down to about $330 as of press time, that translates to a high of around $2500 moving lower under the $1800 mark.
All of this happens as Tesla conducts important research in lithium-ion battery innovation, and increases range and other capabilities for its line of fully electric cars.
Some see Musk’s Tesla company as his greatest innovation, notwithstanding the achievements of his firm SpaceX in pioneering travel above the stratosphere.
With so much happening in Tesla’s stock value trajectory of late, traders are going to have their eyes on this dark horse technology equity. Sure, the FAANG group (Facebook, Apple, Amazon, Netflix, Google) is making headlines every day, but also, many traders have made some kind of Tesla play based on either short-term or long-term interest. If you have this in your portfolio, or if you’re considering it, pay attention to all of the context and factors around Tesla’s wild activity to date.
