Electric vehicle manufacturer Tesla has undergone a three-day losing streak on its stocks, as it tallies a 9% decrease on Thursday.
However, the company has not shown any grave concerns in this recent movement and banked on the upcoming Battery Day to rally its stocks and serve as a catalyst for further upward mobility in the numbers.
According to a report by Pippa Stevens on CNBC, Tesla will also raise up to $5 billion through offerings of their stocks “from time to time” and “at-the-market” prices.
Stevens shares that Wednesday’s drop of 5.8% was attributed to one of the company’s largest outside shareholder, Baillie Gifford, as they reduced their holdings in the company from around 6.3% to less than 5%. They cited portfolio restrictions as to their main motivation for the move but they reiterated that they plan to remain as a long-term shareholder of the auto manufacturer.
Experts suggest that the company is just experiencing a perfectly natural cycle on its stocks. According to Bespoke Investment Group, as cited by Stevens, “shares of Tesla are in the middle of a hangover as the stock is on pace for its third straight daily decline”.
While Credit Suisse suggests that Tesla’s “fundamentals are driving stock performance”.
Though the recent decline is just a small thing compared to the company’s meteoric rise in the industry, Stevens supposes that the “momentum behind the stock’s record run may be slowing”.