Why Tesla Shares Have Been Sinking This Week
The major U.S. stock indexes are having a down week, but Tesla (NASDAQ: TSLA) shares are faring much worse. While the S&P 500 index and Nasdaq Composite index were trading lower by 1% and 1.5% this week, respectively, as of Thursday afternoon, Tesla was about 11.5% below last Friday's close at that time, according to data provided by S&P Global Market Intelligence.
Tesla's decline is a continuation of a trend that started several months ago. Tesla shares are down by nearly 50% in just the past three months. This week had some new developments that helped contribute to the drop, however.
There has been growing concern from analysts that the company will report disappointing fourth-quarter vehicle sales. At the same time, CEO Elon Musk has been focused on his new role as CEO of Twitter, which has stirred some controversy that investors feel might be damaging to the Tesla brand. And today, it was revealed that Musk has sold another 22 million Tesla shares this week worth nearly $3.6 billion.
Source Fool.com
