Shares of Tesla, Inc. are expected to open on the Nasdaq index 09:30 a.m. Tuesday U.S. time up almost 5% after an almost 6% fall Monday. The bell should ring at $563 for each share.
The paper ended lower for a fifth consecutive session Monday, caught in a technology-led selling that has wiped more than $277 billion off the electric carmaker's market value over the last month, according to stock market data.
Tesla's stock fell nearly 12% last week and have devalued more than 15% this, according to Investor's Business Daily. Tesla chief executive Elon Musk, who owns almost 18% of the company's shares, lost most in the selling.
With investors jittery about rising interest rates and selling of high-value stocks in recent weeks, Tesla's market cap has declined by nearly $300 billion since its record high of $550 billion Jan. 26, falling behind Facebook, which it overtook in December after joining the S&P 500.
According to Bloomberg's billionaires index, Musk's wealth dropped by $27 billion last week. The decline is roughly equal to the entire fortune held by Dyson Ltd. founder James Dyson - the world's 52nd wealthiest man, Bloomberg said.
The technology-heavy Nasdaq index has fallen almost 11% over the past three weeks. Tesla's shares retreated as much as 6.5% Monday, while rivals NIO and Li Auto settled down 7.6% and 5.0%, respectively.
But now is "not the time to panic," Wedbush Securities Inc. analyst Dan Ives said, as the recent weakness in electric vehicle stocks will be temporary as companies digest their gains.
"The selling we've seen in EV land creates a massive buying opportunity in our opinion to own Chinese EV players as well as the leader of the pack Tesla heading into this golden age of EVs," Insider quoted Ives as saying.
Tesla's rally in recent months is rooted in projections the company will expand car output quickly and profitably.
Tesla's stock price fell more than 60% in February and March 2020, when the coronavirus outbreak jolted global markets. After rising to new peaks in August last year, it fell 33% before resuming its recent rise.
