Tesla’s impressive four-day rally came to a halt on Monday, failing to continue the strong gains from the previous week. The electric-vehicle manufacturer closed the day with a 2.8% decrease, settling at $188.13.
The decline continued on Tuesday, with Tesla’s premarket price down 0.4% at $187.45. Additionally, the S&P 500 futures were falling by 0.3% and Nasdaq futures were retreating by 0.5%.
Analyst Jim Reid from Deutsche Bank noted in a Tuesday report that this marked a rare session in which the “Magnificent Seven” group of tech stocks, including Tesla, underperformed with a 0.8% decrease. This tech sentiment pullback also had a minor impact on the S&P 500, which finished down by 0.09%.
Reid wrote, “But it was also a day when a more prevalent theme this year of differentiation within the mega caps was evident. The reversal was led by a decline of 2.81% for Tesla, which is now ranked as the second worst performer in the S&P 500 so far in 2024, down by 24.3%.”
The week began with Tesla facing criticism during the Super Bowl. Two commercials urging drivers to boycott Tesla’s self-driving technology were shown during the breaks. These ads were sponsored by technology entrepreneur Dan O’Dowd’s project called “The Dawn Project,” as O’Dowd has been a vocal critic of Tesla’s driver-assistance features and wants the system turned off.
Other electric-vehicle manufacturers’ shares were also affected. Lucid Group saw a decrease of 0.68%, NIO shares gained 0.8%, and BYD stock gained 0.9% in Hong Kong trading. General Motors’ stock fell by 0.2%, settling at $39.20.
It is worth noting that Tesla is currently far from its 52-week high of $299.29, which the company reached last summer.
Despite the decline in stock, Tesla’s trading volume for the day remained at 95.5 million, which is 20.3 million below its 65-day average daily volume of 115.8 million.