Tesla's Value Sinks by $10 Billion in a Week as Rout Deepens
(Bloomberg) -- Tesla Inc. just can’t seem to catch a break.
If the rout sparked by an SEC investigation into CEO Elon Musk’s tweets on taking the carmaker private wasn’t enough, a subsequent tweet storm mocking the agency and an unflattering comparison to Lehman Brothers Holdings Inc. slewed off even more value. Shares extended losses for a fifth straight session Monday, falling 4.3 percent to the lowest in more than 18 months.
The stock rebounded in after-hours trading, recovering about 1 percent, after Macquarie initiated coverage of Tesla with an outperform rating.
The stock closed at its lowest level since March 2017 on Monday, shaving more than $10 billion off its market capitalization in one week.
“The auto industry is on the precipice of a multi-decade transformation” driven by disruptive innovation and technology, which Tesla is “uniquely positioned” to lead, Macquarie analyst Maynard Um said in a note.
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