The development on the stock exchange can sometimes be paradoxical: at the beginning of this year, several analysts began to issue targets for the Tesla share that were well above the already sharply increased prices – but from the end of January it instead began to slide. Up to 35 percent, the losses over the Tesla record added up to just over 900 dollars. And no sooner did the reports of the Tesla weakness pile up than the share began to jump – with which it gained almost 20 percent in one fell swoop on Tuesday.
Tesla shares have been weak since late January
From trading on Tuesday, Tesla shares went up at $ 673.58, almost at their daily high and up 19.6 percent. The market capitalization increased again by a good 100 billion dollars to now 646 billion dollars.
The apparently only temporary weakness at Tesla began almost exactly the day after the announcement of the business figures for 2020 and the outlook for 2021. Observers were particularly bothered by the fact that the company was forecasting no more than an increase in electric car deliveries by 50 this year Percent. That’s rapid growth from an already high level, but apparently more was expected of Tesla. From mid-February, the share was also drawn into a general market weakness, which had a disproportionate effect on Tesla and other future companies.
And because long-term US interest rates (the level at which future earnings are discounted to their current value) stopped rising on Tuesday, the entire market rebounded. Just as Tesla previously got under the wheels, the share benefited disproportionately from this recovery. There was no significant company news in the weak phase from February, nor was there any extremely positive news about Tesla on Tuesday. The ups and downs seem to have been largely market-related and psychological.
Third break-in in 12 months
In any case, it was not the first time that Tesla shares suffered such a severe slump – it was the third in a good 12 months. From February to March 2020, it even lost a good 60 percent when it became clear that the corona virus would also affect the West. And when the hoped-for inclusion in the S&P 500 index initially failed to materialize in September 2020, the Tesla price fell by around a third within days. Those losses have since been more than made up, and optimists anticipated it will be the same before Tuesday’s sharp recovery. In any case, a start has now been made for this.