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Tesla shares plummet after split: What’s going on?

After the 1-to-5 stock split of shares of Tesla stock (NASDAQ: TSLA), the stock dropped significantly. Does that mean doom-and-gloom for the EV automaker, or is it more of a hiccup?

Tesla stock, unlike most other, gets tons of news coverage every time there’s a gain or a loss. Additionally, the stock is volatile and is favored by short sellers. In some ways, the stock is more of a gamble than an investment.

But if you’re one of those people thinking you should sell or buy, it’s always important to look at longer-term trends. Tesla stock, admittedly, doesn’t behave like normal stock. For example, the company is worth more on the market than any other automaker, but General Motors produces and sells far more vehicles a year and makes more profit.

One person has the ability to shift which way the stock trends. The CEO of Tesla, Elon Musk, in the past has introduced Flamethrowers and S3XY booty shorts as a way to get more news and drive people to the market. I wouldn’t be surprised if something like that happens again soon.

Regardless, Tesla stock bucks many trends and seems like it always finds a way to grow. As of this publication, it’s at $358.26 a share, which is down 14.36% for the day. But it’s unlikely that it’ll stay there long, as the pain of being snubbed by the S&P 500 won’t sting for too much longer.

(Editor’s Note: This is not investment advice and shouldn’t be taken as such. Please consult an investment advisor when making any financial decision. The author of this story, along with all EV Pulse staff, do not hold positions in any of the companies that it covers.)

Written by Chad Kirchner
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