Why Tesla Shares Dropped Today
Shares of Tesla (NASDAQ: TSLA) have been on a roll recently with a 20% gain over the last three weeks. But some investors are trimming their positions today. The stock dropped about 6.5% early Tuesday, and shares remained down 4.8% as of noon ET.
While today's dip might be profit-taking on the back of recent gains, there were two catalysts that likely initiated the decline. Some electric vehicle (EV) investors may have shifted investment funds into Ford Motor Company today, after it said that it was again raising planned production capacity for its F-150 Lightning pickup due to surging demand. That prospect of strong competition and a separate announcement from Tesla itself seem to be driving today's stock action.
Image source: Tesla.
Source Fool.com
