How Tesla Stock Price Might Affect Markets

Mr. Musk has previously sold most of Tesla’s stock. Last year, it sold nearly 15 million shares in two months, valued at more than 16 billion. That sale did not appear to be measurable in Tesla’s price, although it is unknown whether the price would have been higher if it had not sold.

Tesla is a component of both the S&P 500 and the Nasdaq composite index. In addition to being a barometer of how stocks perform in the United States, both indexes are reflected in the number of mutual funds in which investments are widely made.

The S&P 500, the benchmark US index, weighs companies according to their market value. Tesla, valued at about $ 900 billion, is one of the most influential stocks in the index.

According to Howard Silverblatt, senior index analyst at the S&P Dow Jones Index, for every dollar Tesla’s stock fell on Tuesday, the S&P 500 lost 0.099 points. That means Tesla’s stock was down about a tenth of the S&P 500’s decline on Tuesday.

“It simply came to our notice then. Silverblatt said, but “not the most.” Apple is more affected than Tesla with almost three times the rating. Its 3.7 percent fall on Tuesday contributed further to the overall index’s decline.

Tesla is a popular volatile stock. Tuesday’s 12.2 percent decline was the worst daily decline since September. 8, 2020, when it lost about 21 percent of its value. But in the last six months, Tesla’s stock has fallen nearly 12 percent, as of November. 9 and Jan. 27.

Some – including Mr. Musk, sometimes – suggests that Tesla is worth more. For those who believe in Tesla’s valuation, which is much larger than the size of its performance than rival automakers, a lot of the arguments are based on Mr. The custodian of musk. Tesla also acknowledges the risk in its most recent quarterly report: “We rely heavily on the services of Tesla’s techno-king and our chief executive officer, Elon Musk. However, Mr. Musk spends considerable time with Tesla and is very active in our management. He does not devote his full time and attention to Tesla.

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