Here’s why the automaker is declining even as the Dow jumps.
Shares of the EV maker were down nearly 4% at one point on Monday morning.
Investors are bracing for Tesla’s quarterly delivery report in a few weeks.
Shares Tesla (NASDAQ:TSLA) slipped Monday morning, falling as much as 3.7%. They have recovered some since, and as of 11:20 a.m. EDT today, shares were down approximately 2%.
The stock’s drop, followed by a partial recovery, seems to coincide with pricing trends of other growth stocks on Monday. Broader-market trends, therefore, are likely the main reason for the stock’s volatility today.
As of this writing, the S&P 500 is about flat and the Dow Jones Industrial Average is up 0.6%. But the tech-heavy Nasdaq Composite is lagging both indexes, off about 0.5%. Many growth stocks like Tesla are down several percentage points or more.
Pressure on growth stocks extends negative trends from last week, when the S&P 500 suffered its most significant losing streak since February, with many growth stocks getting hit harder than the overall market.
Tesla investors are likely looking ahead to the end of the quarter, as the EV maker is slated to report its third-quarter deliveries during the first few days of October. It’s tough to estimate where deliveries will fall for the period, since the auto industry has been facing unusual supply shortages, particularly for semiconductors.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
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