Investors switched from Tesla (NASDAQ:TSLA) to Nikola (NKLA) on Tuesday which marked another bitter day for Tesla shareholders. The stock shed $ 88 per share to hit its lowest level since Tesla’s stock split. The shares of stock market rival Nikola shot up another 40.79% to around $50,05. At the same time, after the long weekend, the latest correction on the recently overheated US stock exchanges continued.
The Nikola shares were fueled on Tuesday by the entry of the automaker General Motors (GM) , which takes over eleven percent of Nikola equity.
Tesla, on the other hand, has got a large chunk of fresh money from investors. But seems like this cared off majority of investors. Another reason for the downward trend is probably the fact that the share was not accepted in the S & P 500 Index. Within five days, the stock has lost $160 or around 30 percent in value – a huge minus. The market value of the manufacturer of electric vehicles has collapsed by more than 130 billion dollars in just a few trading days.
TSLA stock is currently trading just above solid cross support, which is formed by the horizontal support at $ 340 and the 50-day line . Ultimately TSLA needs the next catalyst to move the stock up. Is this catalyst just around the corner?