21%! What happened to Tesla, the biggest one-day drop in stock price in history?

Published: Sep 09, 2020 13:36 (GMT+8)

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SMM9 March 9: yesterday, Tesla's share price plummeted. By the close, Tesla was down 21.06%, the largest one-day decline in history, with a total market capitalization of US $307.7 billion.

Tesla's share price has risen 400% since the beginning of this year, but it recorded the biggest one-day decline in history yesterday. What happened to Tesla's share price?

According to reports, S & P Dow Jones Indices), which compiles the S & P 500 index, decided on Sept. 8 to include only three companies, namely, Etsy Inc., a global manufacturer of chip testing equipment, and Catalent Inc., a major manufacturer of wafer testing equipment, without mentioning Tesla. Tesla was expected to be included in the S & P 500. the company had announced four consecutive quarters of profits, which was one of the requirements for inclusion in the S & P 500, but Tesla was not included in the S & P 500. bring some negative sentiment to investors and drive the stock price lower.

Tesla had previously revealed that the plan to raise $5 billion by issuing new shares announced on Sept. 1 had been completed on Sept. 4. After implementing the stock split plan of one share into five shares, Tesla immediately announced the next day that he would sell new shares irregularly at the market price.

Tesla said that the annual shareholders' meeting and "Battery Day" will be held at the factory in Fremont, California, on Sept. 22, and many analysts believe that the "Battery Day" in the near future will be an opportunity for Tesla to turn around. Ben Kallo, an analyst at Baird, the US investment bank, said Tesla's share price largely reflected the expected inclusiveness of S & P ahead of its announcement on Friday, a move he called "surprising". He expects Tesla to eventually join the benchmark, and the company's Battery Day, scheduled for Sept. 22, may be a positive catalyst.

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