Stock market: Tesla refused in the flagship Wall Street index, stocks plunge! –

  • You're here

Published on


Stock market Tesla refused in the flagship Wall Street index - Stock market: Tesla refused in the flagship Wall Street index, stocks plunge! -
You're here

Heavy disappointment for shareholders You're here. American electric vehicle maker founded by eccentric billionaire Elon musk will not push the doors of the S&P 500 Index, Wall Street's benchmark barometer, following a decision made by S&P Dow Jones Indices. Investors had high hopes, however, to see the firm of Elon Musk join this famous index thanks to the four consecutive profitable quarters aligned by the group … and an extraordinary market capitalization (following the crazy flight of the title) for a car manufacturer, whose registrations are however far behind those of its major competitors. This Tuesday, Tesla stock plummets 15% at the opening of Wall Street.

Elon Musk's firm delivered about 90,650 vehicles in the second quarter over the period, while the FactSet consensus stood at 72,000 units. This performance is all the more remarkable since it was achieved during a quarter marked by the Covid-19 crisis. Lately, the news has been particularly rich for Tesla, between a fundraising of $ 5 billion, the division by 5 of the shares (compensated by a number of shares 5 times higher) and the reduction of the participation of the second shareholder of the manufacturer …

>> Also read – Tesla, Porsche … 6 electric or hybrid sports cars with bluffing performance

Tesla was also hit by the news of GM's stake in Nikola electric trucks. US automaker General Motors said on Tuesday it would take an 11% stake in electric and hydrogen truck maker Nikola, for which it will produce the batteries and fuel cells for the Badger pickup. Nikola's stock soared 27% around 12:40 GMT in electronic exchanges before the New York Stock Exchange opened while that of GM took about 6%.

Under the terms of the deal, announced in a joint statement, GM will receive the equivalent of $ 2 billion in new Nikola shares as well as the right to appoint a member to its board in exchange for several services. The Detroit giant will notably develop electric batteries and fuel cells of the Badger model by Nikola, which represents "a key step in the commercialization" of these technologies. "Nikola is one of the most innovative companies in the world. General Motors is one of the best engineering and manufacturing companies in the world. You couldn't ask for a better partnership than this," commented Nikola founder Trevor Milton in the statement.

>> Our service – Save money by testing our Auto Insurance comparator

With this partnership, his group "gains immediate access to decades of sourcing and manufacturing knowledge, tested and ready-to-use propulsion technologies for electric vehicles, first-class engineering and investor confidence. ", he added. For General Motors, the agreement expands the group's presence "in high-volume segments of electric vehicles while lowering the cost of batteries and fuel cells by building on a larger scale and increasing profitability ", commented Mary Barra, the boss of the manufacturer.

>> To read also – Tesla sued for … his painting

"In addition, applying General Motors' technological solutions for electric vehicles to the heavy-duty category represents another important step in the implementation of our strategy for an emissions-free future," she added. The group wants to move up a gear in this niche and aims to develop 20 models of all-electric vehicles by 2023.

The latest industry news in your mailbox. Receive our BOURSE newsletter.

Categories Cars

Leave a Comment