Tesla's stock falls again, toward longest losing streak in 7 months
Tesla’s stock was falling 1.7% in recent trading toward a sixth straight loss, which would be the longest losing streak since the seven-day stretch that ended April 22.
For those wondering it the selloff has anything to do with Tuesday’s election, since CEO Elon Musk has gone all in supporting former President Trump, there isn’t anything to suggest the EV giant’s stock is being affected by Trump’s chances.
The correlation coefficient between Tesla shares and Trump Media’s “DJT” stock, which has arguably acted as a proxy for Trump’s odds of winning, since Musk endorsed Trump on Sept. 13, was just 0.16. That compares with the correlation between Tesla’s stock and the Global X Autonomous & Electric Vehicles ETF of 0.68 over the same time, and between the stock and the S&P 500 of 0.6%.
Wedbush analyst Dan Ives while there would be some positives for Tesla if Trump wins, such as tariffs that could keep China-based EV competition away. But that could also work against Tesla if it leads to retaliatory tariffs on Tesla’s EVs by China, which accounted for 22.5% of Tesla’s third-quarter revenue.