Tesla Loses All the Gains From 35% Rally Stoked by Hertz Electric Vehicle Deal
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Tesla Inc.’s stock went on a tear after an October deal with Hertz Global Holdings Inc. signaled broader mainstream adoption of its electric cars.
But that 35% rally is gone now.
Tesla slid 4.2% on Dec. 20, getting as low as $893.39. That put the shares below where they’d closed right before the $4.2 billion Hertz deal was revealed Oct. 25.
The stock, which peaked Nov. 4, is down 21% in December, poised for the worst month since the pandemic-fueled rout in March 2020.
Hertz’s order for 100,000 vehicles had sent Elon Musk-led Tesla’s shares on a near-vertical rise, pushing the company’s valuation well above the coveted trillion-dollar mark. Yet, the rally soon started wobbling after Musk started offloading some of his stake in the company. Tesla’s market cap is now about $905 billion.
A broad market decline weighed on Tesla Dec. 20, with renewable-energy firms such as solar companies and other electric-vehicle makers broadly underperforming after Sen. Joe Manchin (D-W.Va.) said he wouldn’t support President Joe Biden’s spending plan. Nikola Corp. fell as much as 8.8%, while Rivian Automotive Inc. dropped as much as 9.5%. Workhorse Group Inc. was lower by as much as 10%, and Lordstown Motors Corp. fell 9.4%.
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