Why Tesla Dropped as Much as 5% Friday
Word spread quickly yesterday that almost 1.1 million Tesla (NASDAQ: TSLA) vehicles were being recalled. But that's likely not why the stock tumbled today. At the morning's lows, Tesla shares were down just shy of 5%. As of 1:48 p.m. ET, the stock hovered near that level, down 4.6%.
The stock market isn't always efficient, but simple math indicates that the recall isn't the reason Tesla shares have dropped for a second straight day. Tesla's market cap has dropped by $75 billion over just the last two trading sessions, and the recall isn't even going to require vehicles be returned to service centers.
So what has caused more than an 8% decline in Tesla shares over two days? It may have a more simple explanation.
Source Fool.com
