Tesla Pauses After Stock Rallies 50% From Its May Bottom




  • In Business
  • 2022-08-16 20:21:08Z
  • By Bloomberg

(Bloomberg) -- Tesla Inc. whipsawed Tuesday after a relentless surge that pushed the stock up 50% from its May bottom lost some momentum, with investors broadly souring on growth stocks.

Most Read from Bloomberg

  • Saudi Billionaire Made $500 Million Russia Bet at War Onset

  • 'Next Generation' Moderna Coronavirus Booster Jab Approved for Use in Adults

  • Wells Fargo Plans Major Retreat From Mortgage Business It Long Dominated

  • These Six Cities Are Emerging as New Expat Hot Spots

  • Singapore's Next Premier Wong Warns US, China May 'Sleepwalk Into Conflict'

The electric-vehicle maker closed down 0.9% at $919.69 after fluctuating throughout the trading session. It jumped as much as 1.7% earlier in the day, taking the stock up 50% from the May 24 closing low of $628.16. The shares currently remain about 26% below their all-time intraday high of $1,243.49 reached on Nov. 4.

While Tesla investors have been through a tumultuous 2022, with the company tackling several challenges, the shares have been recovering at a torrid pace. They posted a 32% gain in July for Tesla's best month since October, as resilient second-quarter results, a climate change bill from the Biden administration and an overall cautiously optimistic mood in the markets helped boost the stock.

Still, most of the risks that weighed on the company earlier this year are lingering -- supply-chains are far from sorted, China's troubles are building further and the broader-market sentiment is uncertain.

Meantime, Elon Musk's tussle with Twitter Inc. continues. Earlier this month, Tesla's chief executive officer offloaded $6.9 billion worth of Tesla stock to accumulate cash ahead of a trial on the Twitter issue.

The company held its annual general meeting on Aug. 4, where its investors voted to approve a 3-for-1 stock-split. The shares will start trading on a split-adjusted basis on Aug. 25.

It will be Tesla's second share-split in less than two years. The last time the company had executed a similar move was in 2020, a five-for-one stock split that led to a 60% surge in the share price from the day of the announcement to the execution date.

(Updates stock move in second paragraph.)

Most Read from Bloomberg Businessweek

  • Whole Foods' Battle Against Black Lives Matter Masks Has Much Higher Stakes

  • Andreessen Horowitz Thinks It's Time for Adam Neumann to Build

  • Being Thrown Off Social Media Was Supposed to End Alex Jones's Career. It Made Him Even Richer

  • Chinese Shun Debt and Pile Up Savings, Threatening Global Growth Engine

  • London Lures Top Facebook Executives

©2022 Bloomberg L.P.

COMMENTS

More Related News

Australia Posts Fiscal Boost From Exports; Surplus Still Distant
Australia Posts Fiscal Boost From Exports; Surplus Still Distant

(Bloomberg) -- Australia reported a significantly improved budget outcome for fiscal 2022 even as Treasurer Jim Chalmers dismissed prospects for the books to...

Apple Ditches iPhone Production Increase After Demand Falters
Apple Ditches iPhone Production Increase After Demand Falters

(Bloomberg) -- Apple Inc. is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize...

Treasury 10-Year Yields Rise Above 4% for First Time Since 2010
Treasury 10-Year Yields Rise Above 4% for First Time Since 2010

(Bloomberg) -- Treasury 10-year yields extended their steepest monthly increase in almost 20 years to top 4% as elevated inflation and rapid central bank...

Darkness Descends on Cuba as Hurricane Causes Blackout
Darkness Descends on Cuba as Hurricane Causes Blackout

(Bloomberg) -- Cuba was hit by a nationwide blackout Tuesday after Hurricane Ian knocked out the country's ailing energy grid as it tore across the island en...

Vietnam Evacuates Thousands as it Braces for Noru, Strongest Typhoon in Decades
Vietnam Evacuates Thousands as it Braces for Noru, Strongest Typhoon in Decades

(Bloomberg) -- Typhoon Noru made landfall in Vietnam early Wednesday morning, knocking out power for more than 500,000 households and causing flooding and...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business