Tesla Loses All the Gains From 35% Rally Stoked by Hertz Electric Vehicle Deal

Dec 20, 2021,

(Bloomberg) Tesla Inc.’s stock went on a tear after an October deal with Hertz Global Holdings Inc. signaled broader mainstream adoption of its electric cars.

But that 35% rally is gone now.

Tesla slid 3.5% on Monday, closing at $899.94. That put the shares below where they’d closed right before the $4.2 billion Hertz deal was revealed on Oct. 25.

ROO.AI Oil and Gas Field Service Software

Tesla shares have given up the gains that followed the Hertz deal

The stock, which peaked on Nov. 4, is down 21% in December, poised for the worst month since the pandemic-fueled rout in March 2020.

Hertz’s order for 100,000 vehicles had sent Elon Musk-led Tesla’s shares on a near-vertical rise, pushing the company’s valuation well above the coveted trillion-dollar mark. Yet, the rally soon started wobbling after Musk started offloading some of his stake in the company. Tesla’s market cap is now about $904 billion.

A broad market decline weighed on Tesla Monday, with renewable-energy firms such as solar companies and other electric-vehicle makers broadly underperforming after Senator Joe Manchin said he wouldn’t support President Joe Biden’s spending plan. Nikola Corp. fell 7.3%, the most since Nov. 18, while Rivian Automotive Inc. dropped 7.9%. Workhorse Group Inc. was lower by 8.9%, and Lordstown Motors Corp. fell 8.2%.