(Bloomberg) — The relentless rally in Tesla Inc. took a breather Tuesday as investors shunned riskier growth stocks amid concerns over a global economic slowdown.
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The electric-vehicle maker’s dropped as much as 2.1% in New York, reversing gains of as much as 1.7% earlier in the session, which took the stock up 50% from the May 24 closing low of $628.16. The shares currently remain about 27% below their all-time high of $1,243.49 reached on Nov. 4.
While Tesla investors have been through a tumultuous 2022, with the company tackling several challenges, the shares have been recovering at a torrid pace. They posted a 32% gain in July for Tesla’s best month since October, as resilient second-quarter results, a climate change bill from the Biden administration and an overall cautiously optimistic mood in the markets helped boost the stock.
Still, most of the risks that weighed on the company earlier this year are lingering — supply-chains are far from sorted, China’s troubles are building further and the broader-market sentiment is uncertain.
Meantime, Elon Musk’s tussle with Twitter Inc. continues. Earlier this month, Tesla’s chief executive officer offloaded $6.9 billion worth of Tesla stock to accumulate cash ahead of a trial on the Twitter issue.
The company held its annual general meeting on Aug. 4, where its investors voted to approve a 3-for-1 stock-split. The shares will start trading on a split-adjusted basis on Aug. 25.
It will be Tesla’s second share-split in less than two years. The last time the company had executed a similar move was in 2020, a five-for-one stock split that led to a 60% surge in the share price from the day of the announcement to the execution date.
(Updates stock move throughout, adds details.)
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