(Reuters) – Tesla Inc shares fell for a fifth straight session on Monday, caught in a tech-driven selloff that wiped more than $ 244 billion from the company’s market value over the past month.
High-flying tech stocks, which fueled the market rebound from pandemic lows in March last year, have been hit by a double whammy of rising returns as investors transferred funds to sectors poised to benefit from a recovery in the economy. worldwide with the help of Accelerated COVID-19 Vaccine Launches.
“People invested in these stocks super aggressively to push them from $ 40 to $ 900, and that medium will generally come out just as quickly,” said Craig Irwin, an analyst at Roth Capital Partners.
“Obviously it was over the top at $ 200, and I would say grossly over the top at $ 900. Retail often doesn’t sell as fast as institutions, so the correction could last longer than for other tech stocks.”
The Nasdaq Heavy Tech Index has fallen more than 8% in the past three weeks. Shares of Tesla fell as much as 3.1% on Monday, while its peers Nio Inc and Li Auto fell almost 3%.
The automotive industry in general has been pressured by a global shortage of semiconductor chips, which has caused a significant delay in manufacturing activities and has forced many companies to reduce production.
In late February, Tesla CEO Elon Musk said the company’s Fremont, California plant was closed for two days due to a “parts shortage.”
The week-long selloff has cut Musk’s wealth by $ 43 billion as of Friday, according to Reuters calculations.
Report of Munsif Vengattil and Akanksha Rana in Bengaluru; Edited by Sriraj Kalluvila and Devika Syamnath