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Tesla stock rallies 10% after plunging a record 21% during Tuesday's tech rout

Sep 9, 2020, 19:59 IST
Business Insider
Elon Musk.Charles Sykes/Invision/AP, File

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  • Tesla shares rallied as much as 10% on Wednesday, adding about $32 billion in market value.
  • Apple, Amazon, and other tech stocks were also in the green after the Nasdaq tumbled a record 10% in three trading days.
  • Elon Musk's electric-car company saw its stock price plunge 21% on Tuesday, erasing $82 billion from its market capitalization.
  • Tesla completed a $5 billion share sale and a five-for-one stock split last week, but it wasn't added to the S&P 500 as widely expected, and a key shareholder cut its stake.
  • Visit Business Insider's homepage for more stories.

Tesla stock jumped as much as 10% on Wednesday, boosting the market capitalization of Elon Musk's electric-vehicle company by about $32 billion.

The rebound comes after Tesla shares plummeted 21% on Tuesday, their biggest one-day decline ever. The plunge wiped about $82 billion off the group's market capitalization.

Apple, Amazon, Microsoft, Facebook, and Alphabet were all in the green on Wednesday, as the tech-heavy Nasdaq index showed signs of recovery following a record 10% plunge in three trading days.

Read more: 4 experts break down the drivers behind the sudden plunge in tech stocks that's dragging the entire market lower — and share their best recommendations for what investors should do as the election approaches

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Tesla's stock jump follow its completion of a $5 billion share sale and a five-for-one stock split last week. However, the company was recently snubbed by the S&P 500 despite meeting the benchmark index's eligibility criteria, and its key shareholder Baillie Gifford also cut its stake, citing internal rules on the weight of a single stock in its client portfolios.

Tesla shares were still up close to 300% this year at the close of trading on Tuesday.

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