Tesla Endured Worst Week in Nearly Two Years, Down Over 15%

15 Nov 2021 · 3rd Party Analysis

Tesla Endured Worst Week in Nearly Two Years, Down Over 15%

WRITTEN BY ThorFX

In Summary:

  • Tesla went through its worst week in 20 months as CEO Elon Musk sold a huge block of holdings
  • Shares of the electric-car company finished the week lower by 15.4%

Tesla Stock Declines Over 15% in a Week

Electric-car maker Tesla experienced its worst weekly performance in 20 months after CEO Elon Musk started selling shares. More precisely, Tesla stock plummeted 15.4% this past week as its chief executive sold a huge block of his holdings.

Shares in the company were last in such a significant decline when Covid-19 swept the financial markets in March 2020. While a global pandemic knocked Tesla’s valuation then, this time it was a promise made by Elon Musk.

In more detail, he is now selling a large portion of his shares in order to abide by his recent Twitter poll. Earlier this month, Mr. Musk asked Twitter if he should sell 10% of his Tesla stake and pay taxes on the proceeds. As it turned out, the community was largely in favor of the proposal.

Musk Sells Shares Worth $6.9 Billion

And now, Elon Musk has collected as much as $6.9 billion from the selling of over 4 million shares. To make good on his pledge, the billionaire CEO likely would need to offload about 13 million shares more. In total, he owned roughly 170 million shares on the day he announced the poll.

To this end, his selling spree has dramatically dented the stock’s performance. On Friday alone, Tesla shares were down 2.8%. Earlier in the week, on Tuesday, the carmaker lost 12% of its value in a single session.

Not all is bad, however. Since the beginning of the year, Tesla stock is up 42%. Prior to the drop last week, the share price set a record of $1,229.91.

A Sunday duel between Elon Musk and Bernie Sanders suggested the Tesla CEO might continue selling shares this week.

“Want me to sell more stock, Bernie? Just say the word…,” Mr. Musk tweeted in response to a tweet from the US Senator. The 80-year-old Democrat used Twitter to say we “must demand that the extremely wealthy pay their fair share.”

What’s Bitcoin Doing Today?

In the meantime, the price of bitcoin, the original cryptocurrency, is trading steady near $66,000 apiece. The stable movement arrives after the crucial Taproot upgrade was activated. In other words, a long-awaited upgrade to the Bitcoin network was successfully launched.

The new changes to Bitcoin’s code were accepted by 90% of all Bitcoin miners. Some of the fresh features in the upgrade include better privacy and improved efficiency. In addition, the changes promise to lower transaction fees and enhance the way smart contracts work.

Dive Deeper in the Financial World

In stocks and pairs early Monday, US futures hover fairly unchanged ahead of the opening bell in New York. The US dollar, on the other hand, continues to dominate the forex market even after a slight decline early on Monday.

With this in mind, the greenback is trading near 114.00 against the Japanese yen. The EUR/USD, meanwhile, hovers near a 16-month low around 1.1450.

What to Expect in the Markets?

Looking ahead into the week, a lightweight economic calendar is on deck for traders and investors. A few major updates include inflation data from the UK and the European Union slated for Wednesday.

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