Tesla (TSLA) Stock Rises 8% to $761 on Monday after 10% Sell-Off on Friday

| Updated
by Darya Rudz · 3 min read
Tesla (TSLA) Stock Rises 8% to $761 on Monday after 10% Sell-Off on Friday
Photo: Depositphotos

After Elon Musk said that “Tesla stock price is too high”, TSLA stock crashed by 12% and closed 10.30% down on Friday. Yesterday, it rebounded and closed 8.54% up, at $761.19.

Last week was eventful for Tesla Inc (NASDAQ: TSLA). On April 23, the carmaker released its Q1 revenue, demonstrating a strong activity despite the coronavirus pandemic. Following the report, the value of Tesla (NASDAQ: TSLA) stock progressed. On Friday, Elon Musk posted several controversial tweets, one saying that the “Tesla stock price is too high”. Shortly after the tweet, Tesla stock saw a massive sell-off. It crashed by 12% and closed 10.30% down on the day. Musk’s statement also wiped $14 billion off the company’s market cap.

What Happened to Tesla (TSLA) Stock after Sell-Off

Yesterday, Tesla shares rebounded and closed 8.54% up, at $761.19. After hours, it slightly declined by 0.23% to $759.45. In the pre-market, TSLA stock is 3.65 % up, at $789.

Tesla stock has significantly suffered in March when the whole market crashed. TSLA shares dropped as low as $361.22 and since then, a steady recovery has taken place. Moreover, after the company released Q1 earnings, some analysts changed their prognosis for more optimistic. For example, after seeing Tesla’s profit in Q1, Morgan Stanley analyst Adam Jonas bumped up his 12-month price target for TSLA shares from $440 to $680 on Monday. Besides, Jonas called Tesla the “most profitable and fastest-growing” auto company in the world, barring Ferrari.

Elon Musk to Sell His Properties

Tesla sell-off on Friday came against the background of Elon Musk’s statements about his possessions. As Tesla founder said, he was planning on selling almost all of his possessions. He explained this decision by “freedom” that stands behind the sale, as physical possessions “just weigh you down”.

Musk tweeted:

On Sunday, two of Musk’s homes in California appeared listed for sale on Zillow. The billionaire is seeking a combined $39.5 million for the properties. The first mansion is a 20,000-foot Bel Air mansion Musk initially bought for $17 million. It has seven bedrooms, a two-story library, theater, lighted championship tennis court, wine cellar, gym, pool, fruit orchard, and motor court with a five-car garage. Besides, it boasts fantastic ocean views. The asking price for this house is $30 million.

Another mansion is a five-bedroom ranch with an oval pool and private guest cottage. Musk is asking for $9.5 million for the property. Notably, it belonged formerly to Hollywood legend Gene Wilder.

Musk bought the two properties for about a combined $24 million back in 2012 and 2013. These houses are part of a six-house collection Musk owns outside Bel-Air Country Club.

Zillow representatives have not yet provided any comments on the news.

Business News, Market News, News, Stocks, Wall Street
Related Articles