Shares of Tesla Inc. (TSLA) tumbled 10.5% to $640.00 in morning trading Tuesday, and have now plunged 27.5% from their record close, to put them on track to suffer their second bear market in less than six months. Many on Wall Street define a bear market as a decline of 20% or more on a closing basis from a significant peak. A close below $706.47, which is 20% below the Jan. 26 record close of $883.09, would make the bear market official. The last time the stock entered a bear market was Sept. 8, 2020, when it closed at $330.21, or 33.7% below the then-record close of $498.32 on Aug. 31. The stock rose to a new record on Nov. 19. Tesla's stock has still run up 22.5% over the past three months, while the S&P 500 has gained 6.9%. Among Tesla's electric vehicle peers, shares of China-based Nio Inc. (NIO) took a 13.6% dive in morning trading, after closing Monday 19.4% below its Feb. 9 record close of $62.84. The stocks of XPeng Inc. (XPEV) and Li Auto Inc. (LI) both fell into bear markets on Dec. 1, while Nikola Corp. shares (NKLA) closed Monday 73.8% below its record close of $79.73 on June 9, 2020.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 23, 2021 09:56 ET (14:56 GMT)
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