Tesla Records Worst Fall In Value, Loses $80 Billion In Single Day
The car maker’s market value dropped 21%, after its exclusion from the S&P 500 Index that it was expected to be a part of
Tesla recorded its worst single-day percentage drop, losing 80 billion dollars in 24 hours. The loss is more than the combined market value of the company’s competitors, General Motors and Ford Motors.
The automobile giant’s stocks crashed 21% after its surprise exclusion from the Standard and Poor’s Composite (S&P) 500 index. Meanwhile, fellow electric car maker Nichola Corp’s value went up after General Motors announced its acquisition of 11% shares in the company.
While the S&P 500 Index Committee decided to add art curator e-commerce site Etsy, automatic test equipment maker Teradyne and pharma company Catalent, the Elon Musk founded Tesla was kept out.
The organization has witnessed steady growth this year, making it larger than some of the biggest auto industry players including Toyota and Volkswagen. Investors and analysts were confident of its addition to the list, after it had reported a fourth consecutive profitable quarter in July.
According to a global media company, Elon Musk’s wealth also witnessed a fall by 16 billion dollars.
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