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Why Tesla Stock Fell on Tuesday

TheMotleyFool

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Shares of Tesla (NASDAQ: TSLA) fell sharply on Tuesday, declining nearly 4% as of 11:40 a.m. EDT. The growth stock's decline follows the electric-car maker's second-quarter report, which was released after the bell on Monday.

Tesla shares are likely trading lower primarily because of a bearish day in the overall market. But an analyst's note to investors about the stock's frothy valuation may also be weighing on the stock.

Model Y. Image source: Tesla.

Source Fool.com

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