Several factors contributed to Tesla’s stock plummeting over the past few days including the disclosure of Baillie Gifford that it reduced its stake in the automaker. The UK-based investment management firm is Tesla’s largest shareholder.
Investors were disappointed when Tesla was not included in the S&P 500 Index on Friday. In a note on Tuesday, Baird analyst Ben Kallo wrote, “We think the stock could be under pressure following the delay of S&P 500 inclusion, particularly from investors who bought ahead of the announcement expecting an opportunity to sell to passive funds.”
Investment researcher saysTesla is the most dangerous stock
An investment researcher warned that Tesla is the most dangerous stock on Wall Street.
During a recent interview on CNBC’s Trading Nation on Thursday, New Constructs CEO David Trainer said the automaker’s high price and valuation are not supported by fundamentals. He believes the stock is “one of the biggest of all time houses of card that’s getting ready to fold.”
