Bongu Simelane

Merkel Staff

10 September 2020

Tesla Experiences The Worst Single-Day Stock Market Dive

Tesla stock experienced the worst single-day drop ever recorded on Tuesday following its snub from the S&P 500 index.

Although the electric-vehicle manufacturer had seen stock prices rally for a majority of the year leading to it becoming the most valuable car manufacturer – with a current valuation of $307.7 billion – the S&P 500 committee opted against including it in its index.

This decision, paired with Baillie Gifford’s  (Tesla’s largest outside shareholder) to cut its stake in the company resulted in Tesla’s stock plunging by 21.6% – an anti-climactic conclusion to the company’s recent hot streak.

Instead of Tesla, the S&P 500 committee opted to add e-commerce site Etsy, automatic test equipment maker Teradyne and pharmaceutical firm Catalent to its index on Friday.

Throughout 2020, Tesla saw its stock rise by over 300%, which also lead to the company’s CEO Elon Musk’s net worth reaching the $100 billion mark for the first time.

With current estimates, Tesla stock is up by 283% this year.