(Reuters) – Shares of Tesla Inc fell for the fifth consecutive session on Monday, caught in a technology-led selloff that wiped more than $ 244 billion from the company’s market value in the past month.
High-flying technology stocks, which fueled the market’s recovery from last March’s pandemic lows, were hit by a one-two punch of rising yields and helped investors shift money into sectors ready to benefit from a recovery in the global economy. accelerated roll-out of COVID-19 vaccines.
“People went super aggressively to this stock to increase it from $ 40 to $ 900, and that means it usually comes out just as quickly,” said Roth Capital Partners analyst Craig Irwin.
“It was clearly exaggerated at $ 200, and I would say, exaggerated, at $ 900. The retail industry often doesn’t sell as fast as the institutions, so the correction may take longer than other technology stocks. “
The tech-heavy Nasdaq index is down more than 8% in the past three weeks. Tesla shares fell as much as 3.1% on Monday, while competitors Nio Inc and Li Auto fell nearly 3%.
The wider automotive industry is under pressure from a global shortage of semiconductor chips, which has caused a major slowdown in manufacturing activities and forced many companies to scale back production.
In late February, Elon Musk, Tesla’s chief executive officer, said the Fremont, California plant was down for two days due to “parts shortages.”
According to Reuters calculations, the week-long selloff has reduced Musk’s wealth by $ 43 billion since Friday.
Reporting by Munsif Vengattil and Akanksha Rana in Bengaluru; Edited by Sriraj Kalluvila and Devika Syamnath