By Chuck Mikolajczak
NEW YORK (Reuters) – Tesla Inc (O:) shares bounced on Wednesday, a day after the electric car maker suffered the biggest one-day percentage drop in the company’s history.
Shares jumped 6.88% a day after falling more than 21% as the company was passed over for inclusion in the benchmark S&P 500 () index. The decline on Tuesday chopped off about $80 billion in Tesla’s market value, or more than the combined value of fellow automakers General Motors (N:) and Ford Motor (N:).
The stock has been on a meteoric climb this year, rising about 400% through Sept. 4, including a gain of more than 74% in August as expectations grew the company would be included in the S&P 500 after its second-quarter earnings cleared a hurdle for inclusion in the index.
S&P late Friday announced it would include online craft seller Etsy Inc (O:), semiconductor equipment maker Teradyne Inc (O:) and pharmaceutical technology company Catalent Inc (N:) to the S&P 500 instead.
Tuesday’s decline pushed the stock down to a closing level of $330.21, just above its 50-day moving average of $329.63, a key technical support level.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.