(Reuters) – Tesla Inc shares fell for the fifth consecutive session on Monday, caught in a technology-led liquidation that swept more than $ 244 billion from the company’s market value last month.
High-tech stocks, which spurred the bear market’s recovery from the low pandemic in March last year, were hit by a double blow to rising yields and investors transferring funds to sectors that are expected to benefit from a recovery in the global economy aided by accelerated launches. of COVID-19 vaccines.
“People took this action very aggressively to take it from $ 40 to $ 900, and that means it will generally come out just as quickly,” said Craig Irwin, an analyst at Roth Capital Partners.
“It was obviously overdone at as much as $ 200, as I would say it was overdone at $ 900. Retailers generally don’t sell as fast as institutions, so the correction may last longer than for other technology stocks. “
The high-tech Nasdaq index has dropped more than 8% in the past three weeks. Tesla’s shares fell up 3.1% on Monday, while competitors Nio Inc and Li Auto fell nearly 3%.
The broader auto industry was pressured by the global shortage of semiconductor chips, which caused a major delay in manufacturing activities and forced many companies to cut production.
In late February, Tesla CEO Elon Musk said that the company’s factory in Fremont, California, was closed for two days due to “parts shortages”.
The settlement of weeks reduced Musk’s wealth by $ 43 billion on Friday, according to Reuters calculations.
Reporting by Munsif Vengattil and Akanksha Rana in Bengaluru; Editing by Sriraj Kalluvila and Devika Syamnath