Tesla Drops Sharply by 3.12% after Incredible Gains
Tesla stock dipped slightly today and wiped out the previous day's gains, btu it has hardly hurt the company's September gains.
Quick overview
- Tesla stock experienced a significant drop of over 3% on Thursday after a month of impressive gains.
- The stock rose from $329 to $429 per share in September, marking a 30% increase before the recent decline.
- CEO Elon Musk's return to full-time duties and substantial stock purchases have contributed to the stock's earlier surge.
- Upcoming product releases and a potential market rebound may positively impact Tesla's stock in the near future.
Throughout the month of September, Tesla (TSLA) stock has been climbing, making astounding progress, but on Thursday the stocks plummeted by more than 3%.
Tesla stock is down today, and it could simply be attributed to pullback after weeks of gains. The electric car manufacturer’s stock has climbed from $329 to $429 per share throughout the month, a gain of 30%. That bullish trend may not be over yet, but it has at least slowed down for Thursday.
It was only a matter of time before Tesla stock would be expected to slow. The company started seeing incredible stock gains as soon as their CEO Elon Musk left his government work to pursue full-time duties back at Tesla. Musk then invested significantly into the company by purchasing over a billion dollars in stock shares. These moves have helped propel the company’s stock price much higher.
Payout Package for Musk
It was recently reported that Musk will be paid $1 trillion from the company if he is able to increase the company’s valuation over the next 10 years to $8.5 trillion. That would be a significant increase, but Musk is confident he can pull it off, and he defended his proposed payout publicly.
As a result of his defense, the company’s stock rose 3%, but those gains were wiped out in Thursday’s stock drop. However, the decline cannot be entirely blamed on a pullback from Tesla after the company’s stock has done so well. That is expected and partially to blame, but investors should also note that much of the stock market is in decline today, looking bearish after a second day of losses.
Even though Tesla stock is dipping today, it may not stay down for long. The stock market is likely to bounce back soon, and the indices are still close to their record highs. This can only help Tesla’s prospects as the company is preparing a few new product releases in the coming years that could help dramatically improve their market valuation.
Tesla is working on Optimus robots that appear somewhat humanoid and that are designed to perform many tasks in the workplace and at home once they are released. Tesla is also prepping a new electric vehicle release, although details are limited for now. They are looking to expand their robotaxi service too, moving beyond Texas to target other large cities where there is potential for their service to really take off.
Tesla stock could take a hit soon, though, as government tax credits will be ending. The company has received $11.4 billion in tax credits already from the government, but that agreement is closing off on September 30th. The tax credit program was not only for Tesla but also for other qualifying vehicles.
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