Tesla Down 10%... Nasdaq Plummets (Comprehensive)

Nasdaq, Beneficiary of Untact, Experiences Deeper Drop than Dow
Tesla 'Disappointment' and Nikola 'Fraud Suspicion' Raise Corporate Value Doubts

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market, including the Dow Jones and Nasdaq, closed lower again. Out of the last five trading days, four days except one have seen declines. Tesla, the electric vehicle company that disappointed investors the previous day by saying 'there was no new technology,' fell sharply by another 10%. Warnings are emerging that the correction could be prolonged due to controversies over the overvaluation of tech stocks, suspicions of fraud in some companies, and pressure from the U.S. government.

On the 23rd (local time), the Nasdaq index closed at 16,302.99, down 3.02% (330.65 points) from the previous day. The Nasdaq's decline was the largest among the last five trading days. By stock, major stocks such as Apple fell 4.19%, and most core tech stocks including Amazon, Facebook, and Netflix showed weakness of 2-4%.

The Nasdaq's decline is closely related to the tech stock bubble controversy. Tesla failed to present new technology that would meet investors' heightened expectations at the 'Battery Day' the previous day. Bloomberg News commented, "Tesla failed to convince investors why its stock price has risen 340% since the beginning of the year." According to major foreign media, 33 securities firms significantly lowered Tesla's target price to $305 after Battery Day. Tesla's lawsuit against the U.S. Trade Representative, claiming that imposing a 25% tariff on Chinese-made display components is illegal, was also seen as a negative factor.

The situation of Nikola, a hydrogen truck company suspected of fraud, is also worsening. The Wall Street Journal (WSJ) reported that discussions between Nikola and some potential partners, including British Petroleum (BP), regarding the construction of hydrogen refueling stations have been halted. On the day, Nikola's stock price plunged by 25%.

Reports that the Trump administration will submit a government proposal to Congress to strengthen the responsibilities of social media (SNS) companies such as Twitter and Facebook also worsened investment sentiment toward tech stocks in general.

Criticism from experts that tech stocks are excessively overvalued is gaining momentum. WSJ quoted experts saying, "Concerns are spreading that the rise in tech stocks has continued to a level that can no longer be sustained," and "It is necessary to consider whether the stock price increase makes sense."

The value of the dollar remains strong day after day. The Dollar Index, which shows the value of the dollar against major currencies, stood at 94.3, marking the highest level in two months. Influenced by the New York stock market, the KOSPI opened on the 24th at 2,295.62, down 1.61% (37.62 points) from the previous day.

This content was produced with the assistance of AI translation services.