Tesla had a remarkable run from $180 eight months ago to nearly $1,000 three days ago, forcing auto analysts to question their analysis of the electric car company.
At its high of $174.7 billion on Tuesday, Tesla was the 30th-largest company in the U.S. and by far the largest never to have made a full-year profit.
On Tuesday, more than $55 billion of Tesla’s stock was traded, more than the next 10 most traded stocks put together, including technology giants Apple, Amazon, Alphabet, Microsoft and Facebook. If Tesla makes profit in the first quarter of 2020, Tesla will finally pass the S&P 500 financial viability test and join the Big Boys Club.
Tesla’s move on Wednesday demonstrated the danger of chasing a market that many think is turning into a bubble like dot-com names two decades ago, some compare it to Bitcoin in 2017. Tesla’ stock price tanked by 17% in a single day.
According to Jim Cramer of Mad Money, it was a natural pullback.: