Tesla stock rallies after plunging a record 21% during Tuesday's tech rout

Elon Musk.

Charles Sykes/Invision/AP, File

• Tesla shares rallied as much as 7% in pre-market trading on Wednesday.
• Apple, Amazon, and other tech stocks were also in the green, after the Nasdaq tumbled a record 10% in three trading days.
• Elon Musk's electric-car company saw its stock price plunge 21% on Tuesday, erasing $82 billion from its market value.
• Tesla completed a $5 billion share sale and a five-for-one stock split last week, but it wasn't added to the S&P 500 as widely expected, and a key shareholder cut its stake.
• Visit Business Insider's homepage for more stories.

  ---

Tesla stock jumped as much as 7% in pre-market trading on Wednesday, laying the groundwork for a recovery.

The rebound comes after shares in Elon Musk's electric-vehicle maker plummeted 21% on Tuesday, their biggest one-day decline ever. The plunge wiped about $82 billion off Tesla's market capitalization.

Apple, Amazon, Microsoft, Facebook, and Alphabet all rose more than 1% in pre-market trading, pointing to a broader rally for the Nasdaq after the tech-heavy index plunged a record 10% in three trading days.

Read more: 4 experts break down the drivers behind the sudden plunge in tech stocks that's dragging the entire market lower — and share their best recommendations for what investors should do as the election approaches

Tesla's stock jump follow its completion of a $5 billion share sale and a five-for-one stock split last week. However, the company was recently snubbed by the S&P 500 despite meeting the benchmark index's eligibility criteria, and key shareholder Baillie Gifford also cut its stake, citing internal rules on the weight of a single stock in its client portfolios.

Tesla shares were still up close to 300% this year at the close of trading on Tuesday.

Read the original article on Business Insider

from Business Insider https://ift.tt/33fR3JL