Tesla Motors Inc (NASDAQ:TSLA) has been having a rough couple of weeks. Bad news last week sent the stock into a downward spiral, although it recovered on Friday and Monday. Then on Tuesday and again today, shares have begun falling again. The stock hasn’t traded for less than $170 a share since the middle of last month. Shares fell more than 3.5 percent in trading Wednesday afternoon.
Is Tesla beginning to correct?
Some investors are now probably wondering if the sell-off of the last couple of days is the result of the correction bears have long been calling for. Shares of Tesla Motors Inc (NASDAQ:TSLA) never quite hit $200 a share, which could simply be an emotional breaking point for the market, especially because of the excessive exuberance which has surrounded the company and driven its shares to heights even CEO Elon Musk questions.
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Effects of the government shutdown
What’s interesting to note though is that Tesla and a few other stocks may be facing impacts from the government shutdown. As the problems in Washington dragged on this week, we started seeing selloffs not just in Tesla on Tuesday, but also in three other key stocks which have led the markets this year.
Tesla Motors dipped below $165 a share today at one point, but ended the trading day with a decline of 3.41 percent. Netflix, Inc. (NASDAQ:NFLX), another big gainer this year, ended the trading day with a 4.59 percent decline in share price. LinkedIn Corp (NYSE:LNKD) and Facebook Inc (NASDAQ:FB) also struggled a bit today, although both of them recovered to end the trading day with a less than 1 percent decline in share price.
Clearly it’s the market’s biggest gainers which are being affected the most by the government shutdown and uncertainty in the markets. It makes sense because the higher stocks like Tesla Motors Inc (NASDAQ:TSLA) go in such a short amount of time, the faster they could fall whenever any kind of uncertainty shakes the markets.