(NEW YORK) — After a historic rally that baffled many investors and analysts, Tesla stock had one of its worst days in years Wednesday, plummeting nearly 20%.
Shares were trading at $823 when markets opened Wednesday, but fell to $734 by closing time, a more than 17% drop. During intraday trading, it briefly fell more than 20%.
Wednesday’s decline comes after an unexpected skyrocketing of Tesla stock over the past year. It’s value more than doubled since February 2019, especially making aggressive gains over the past few months.
Last month, the electric car maker’s market value overtook Germany’s Volkswagen, making it the second most valuable automaker in the world.
Some analysts attribute Wednesday’s decline to reports that Tesla’s deliveries out of China will be delayed due to the coronavirus outbreak. Some also may be wary about its valuation.
“The news this morning will certainly ruffle the feathers of the China Tesla thesis bulls, however we believe it represents a speed bump that will be short lived and could move out a handful of deliveries in the region from March to the June quarter,” analyst Daniel Ives, managing director of equity research at Wedbush Securities, said in a commentary Wednesday morning.
He continued: “It doesn’t make sense in a lot of ways.”
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