Shares of Tesla Inc.
TSLA,
dropped 5.0% in afternoon trading, enough to pace the S&P 500’s consumer discretionary sector’s losers, in the wake of reports the electric vehicle giant cut prices in China for the second time in two weeks. The selloff comes after the stock closed at a four-week high of $258.08 on Thursday. The stock has been on a bit of a roller coaster over the past few months. After soaring 66% in two months to close July 18 at a 10-month high of $293.34, it tumbled 26.5% to close at an 11-week low of $215.49 on Aug. 18. The stock then shot up 19.8% to close Thursday at $258.08, just missing the bull-market threshold, before Friday’s pullback. Many on Wall Street define a bull market as a rally of at least 20% off bear-market low, which follows a drop of at least 20% from a significant peak. Despite the recent volatility, the Tesla’s stock has still rocketed 99.0% year to date, while the Consumer Discretionary Select Sector SPDR ETF
XLY,
has rallied 31.1%, the Global X Autonomous and Electric Vehicles ETF
DRIV,
has climbed 26.0% and the S&P 500
SPX,
has gained 17.5%.
