Shares of Tesla Inc. TSLA experienced a decline during pre-market trading on Friday. This drop follows a substantial rally that saw the company’s stock achieve its largest single-day gain in over a decade.
What Happened: Tesla’s stock fell by nearly 2% during pre-market hours on Friday, according to data from Benzinga Pro. The decline can be attributed to investors opting to lock in profits after a remarkable 22% surge in the stock price.
This rally was fueled by a significant increase in options activity, signaling heightened interest or speculation in the stock. However, the subsequent drop suggests that some investors are taking advantage of the recent gains.
Market analysts are keeping a close eye on Tesla’s stock movements, as such fluctuations can influence broader market sentiments. Tesla’s performance remains a key focus for investors, given its influential role in the electric vehicle sector.
Why It Matters: The recent surge in Tesla’s stock price added nearly $150 billion to the company’s market value, marking its best performance since 2013. This rally also resulted in a dramatic increase in Elon Musk‘s wealth, with his net worth rising by $33.5 billion in a single day. The stock surge was driven by Tesla’s announcement of its highest quarterly profit since mid-2023. During a webcast, Musk projected up to 30% growth in vehicle sales for the coming year, and the Cybertruck contributed to a quarterly profit for the first time.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Tesla
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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