"Blaming Musk," Tesla 'Suddenly Stops'... Rivian 'Speeds Ahead'

Tesla Falls Another 5.3% Following Last Week's 15% Drop
Rivian Surges 16% Showing Consecutive Gains

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] U.S. electric vehicle company Tesla is engaged in a battle to maintain its 'Thousand Tesla' status. Analysts say that the day before, CEO Elon Musk hinted at the possibility of additional stock sales, which once again dragged down the stock price. Rivian, an electric vehicle company emerging as a competitor to Tesla, continues its sharp rise in stock price, emerging as an alternative investment destination to Tesla.

Tesla's stock price fell below $1,000 to $978 on the morning of the 15th (local time). The intraday drop reached 5.3%. Along with the stock price decline, the market capitalization also fell below $1 trillion. However, by the close of trading, buying interest returned, and Tesla's stock price barely recovered to $1,013, regaining its 'Thousand Tesla' status. Market capitalization also returned to the $1 trillion level.

As Tesla's stock price decline deepened that day, Bloomberg News assessed that Tesla had effectively entered a correction phase. This is because the lowest point of Tesla's stock price that day was more than 20% lower than the all-time high of $1,229 recorded on the 4th.

The stock price drop occurred after CEO Musk hinted the day before, during a debate with Senator Bernie Sanders, that he might sell more shares. Musk warned that if Senator Sanders mentioned the billionaire tax again, he would sell shares.

Last week, Musk sold $6.9 billion worth of Tesla shares. Since Musk had previously indicated he might sell 10% of his holdings, additional sales are expected.

Investor Michael Burry, who predicted the 2008 financial crisis, criticized Musk for using the billionaire tax as a reason to sell shares. Analysts believe that Musk is in a situation where he has to sell shares anyway.

On the 10th (local time), the electric pickup truck R1T from the startup Rivian was displayed in front of the Nasdaq Stock Market in Times Square, New York, USA. [Image source=Yonhap News]

Bloomberg News analyzed that the stock market listing of Rivian, Tesla's competitor, may have affected Tesla's stock price. As Rivian's stock price surged, investors who had been investing in the electric vehicle industry through Tesla may have reallocated their assets.

Rivian's stock price rose 16% that day, ranking third in global automobile companies by market capitalization after Tesla and Toyota. Rivian's stock price soared to $149, up 92% from the IPO price of $78. Rivian's market capitalization is $127.3 billion, about 12% of Tesla's market capitalization.

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