Posted on Sep 8, 2020 at 6:58 PMUpdated Sep 9, 2020 8:04 AM
It was one of the most observed values for the recovery of Wall Street on Tuesday, after a weekend extended by "Labor Day" in the United States. Big absent from the revision of the composition of the S&P 500 index unveiled Friday evening, Tesla did not escape the announced cold snap: the title of the manufacturer gave up nearly 21% at the close, its biggest loss in one session since February.
The euphoria around the Palo Alto firm has clearly cooled off in recent days. Tesla's price, which remained at the end of August on a rise of 500% compared to January – the second best performance of the Nasdaq 100 after Zoom – has since entered into correction with five sessions of consecutive losses. The manufacturer's capitalization, for its part, fell by some 135 billion dollars compared to its high of August 31 (465.2 billion).
Why such disenchantment for the star value of the summer? In addition to the sharp decline in technology stocks started last week, a combination of disappointments weighs since the start of the school year on the title. The announcement of asset manager Baillie Gifford is one: the main external shareholder of Tesla, the Scottish said in early September to have reduced his stake in recent months, from 6% in June to 4.25% at the end of August.
The Elon Musk-led firm also fell a week ago after it said it would put up to $ 5 billion in new shares for sale. " sometimes " and at market prices – enough to make shareholders, especially the many small holders who like the title fear, to see their participation diluted in a larger flow of shares.
The missed meeting with the S&P 500 index is also playing its part. By preferring values like Etsy, Teradyne or Catalent, the committee of experts which chooses the new entrants emphasizes without saying it the weaknesses of the Tesla model: the manufacturer has indeed accumulated four quarters of consecutive profits – a sine qua non condition for integrate the index -, but most of its profit comes from the resale of its CO2 credits to other manufacturers. An unsustainable source of income, according to the leaders themselves.
Always more than Ford, GM and Fiat Chrysler
Tesla's price finally suffered from the announcement on Tuesday of a strategic partnership between General Motors and the electric and hydrogen truck maker Nikola – a front competitor – which will help it produce its Badger pickup in exchange. an 11% stake.
Shunned by the S&P 500, heckled by the markets, Tesla however remains better valued than General Motors ($ 47.2 billion in capitalization), Ford ($ 27.45 billion) and Fiat Chrysler ($ 17.7 billion) combined. The company is also holding, with the “Battery Day” of September 22, an event during which new technologies are traditionally presented, the opportunity to regain control.