Tesla just snapped a losing streak that wiped out nearly $7 billion in investor wealth. 5 striking stats put its plunge into perspective.
- Tesla shares on Thursday snapped their longest losing streak in nine months.
- Nearly $7 billion in investor wealth was erased during the six-day skid.
- Markets Insider has detailed five figures that place the staggering sell-off into perspective.
- Watch Tesla trade live.
For six days, Tesla shares appeared in a state of free-fall.
That was before they rose on Thursday, ending a skid that erased nearly $7 billion in market value. It was the stock's longest losing streak in nine months.The severe decline came as widely followed Tesla analysts slashed their price targets and earnings estimates at a rapid clip, highlighting mounting concerns over demand for Tesla's vehicles and the electric-car maker's financial position.
It's not uncommon to see a stock "bounce" after a large sell-off, as investors swoop back in when they think shares are oversold.
Frank Cappelleri, the chief market technician at Instinet, told Markets Insider on Thursday that it would come as no surprise to see a near-term bounce after such a sharp sell-off.
History has shown that when Tesla's stock has fallen 20% in a week - something it's done four times in the last six years, and narrowly avoided this time around - a bounce has followed.
"The difference now, of course, is that TSLA has broken below a very clear supply zone - a zone that had previously provided support numerous times," he said. "Negative momentum has since taken over, and we see the result. This could make an rally attempt at risk of being faded again."Here are five figures that place the stock's recent drop into perspective: