Tesla rises 14% to lead strong rebound in tech stocks on Wall Street

Tesla rises 14% to lead strong rebound in tech stocks on Wall Street

Wall Street operates with significant gains this Tuesday and one of its main indicators, the technology index Nasdaq, up more than 3%, driven by the giants of the sector.

This Tuesday highlights the 14% bounce in Tesla shares, they came from scoring five consecutive drops that returned the flagship company of South African tycoon Elon Musk to its lowest price in four months.

Since last March 2, the Tesla shares accumulated a drop of 22%, which meant a decrease of USD 153,000 million in the market capitalization of Tesla. In estimates of Reuters, this drop in the value of Tesla also they took more than $44 billion from personal fortune of the CEO of Starlink.

The falling price of Tesla shares meant Elon Musk lost about $44 billion in his personal fortune.

Now, Tesla’s market capitalization has once again exceeded $ 600 billion, although it is still far from its record $ 850 billion reached on January 26.

On the other hand, there were also specific reasons for the poor performance of the Musk brand. Financial analysts pointed out that in 2020 the market had already aggressively steepened the value of their shares by more than eight times.

In this sense, also already titles were expected to have a readjustment down as fast as they had climbed before.

In addition, it should be noted that the electric car brand had a complex evolution. In accordance with Bloomberg, CEOs of Tesla rivals have been saying for months that the company’s growth strategy it was not sustainable.

This is because the competition is significantly catching up with the market with the push from traditional companies in electric vehicles.

The recent rise in the rate of US Treasuries was the trigger for a rapid sell off of stocks on Wall Street.

The recovery of the shares is sustained by a decline in debt profitability government, which undermined confidence in the records reached by the New York stock exchanges and caused an abrupt rotation of portfolios, when expectations of economic recovery and fear of inflation grew as the approval of the new stimulus plan driven by the president Joe Biden for $1.9 trillion.

Bitcoin returns to the uptrend

The Bitcoin meanwhile, it once again positions itself as a preferred asset for investors with greater exposure to risk. With a 6% increase During the day, surgery was performed again in the area of 54.000, to get closer to its highs of USD 58,000 recorded on February 21.

The most popular cryptocurrency remains one of the best investments of 2021, with a 86% cumulative profit in just over two months, raising Bitcoin’s market capitalization above $1 trillion.

Samuel Edwards
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