Tesla stocks back on track or is there more to the story?

Tesla stock

On Wednesday, while the entire market on Wall Street was bearish, the Tesla stock (TSLA) seemed to get back on track after a massive fall. Tesla opened on Wednesday at 1,010.41 and currently trades at $1,057.90, up 34.54 points (3.50%)today.

Tesla fell significantly after Elon Musk tweeted asking their opinion if or not he should sell 10% of his Tesla stocks.

The Tesla stocks did not turn volatile immediately after the poll ended and remained neutral. However, in the following 24 hours, the EV manufacturer’s stocks plunged. On Tuesday, the dip was as big as 12%, taking the Tesla stock price to $1,023.5.

After falling for three consecutive days, which was also influenced by Tesla director and Elon Musk’s brother Kimbal Musk sold around $109 million in Tesla stocks.

Yet, Tesla gained a 4.21% rise in its stock price early Wednesday and stood at $1,068.32 (NASDAQ).

Elon Musk Tweet- The after effects on Tesla stock

The electric vehicle maker slumped in premarket trading Wednesday, putting the company at risk of losing the $1 trillion market capitalization mark amid a selloff that has already erased more than $200 billion from its market capitalization. 

As the Tesla stock skid, the company lost $50 billion in just two days. Despite this considerable slump, Elon Musk’s fortune is still up 70% this year. The credit goes to Tesla Inc.’s strong earnings growth and the higher valuation of SpaceX.

With this steep fall, Elon Musk’s Tesla saw the biggest fall in Bloomberg Billionaires Index. It is also the most significant one-day fall after Jeff Bezos’s $36 billion plunges after his divorce from MacKenzie Scott in 2019.

The Analysts on Tesla’s Comeback

Many analysts establish that the Tesla stocks will be volatile unless Elon Musk sells off 10% of the stocks.

There is still more to the story than what the eyes see. While the Tesla holders wish for the stock prices to make a comeback, the truth is that it actually will remain unsettled unless Elon Musk abides by his Twitter poll results.

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