UK Markets open in 5 hrs 18 mins
  • NIKKEI 225

    28,750.87
    +119.42 (+0.42%)
     
  • HANG SENG

    29,909.84
    +461.99 (+1.57%)
     
  • CRUDE OIL

    52.22
    -0.05 (-0.10%)
     
  • GOLD FUTURES

    1,854.50
    -1.70 (-0.09%)
     
  • DOW

    30,996.98
    -179.02 (-0.57%)
     
  • BTC-GBP

    23,897.42
    -61.50 (-0.26%)
     
  • CMC Crypto 200

    668.65
    +58.66 (+9.62%)
     
  • Nasdaq

    13,543.06
    +12.15 (+0.09%)
     
  • ^FTAS

    3,786.06
    -16.24 (-0.43%)
     

Tesla pulls S&P 500 lower for second day in index

Noel Randewich
·1-min read
A branch office of car manufacturer Tesla is seen in Bern

By Noel Randewich

(Reuters) - Shares of Tesla dropped 4% on Tuesday, down for a second straight day following the electric car maker's debut in the S&P 500.

The stock has lost 10% since Friday, when it hit a record high as investment funds that passively track the S&P 500 bought $90 billion worth of Tesla shares so that their portfolios reflected the changes to the Wall Street's most followed benchmark.

For a second day, Tesla's stock contributed more than any other to the S&P 500's decline. The S&P 500 was last down 0.1%.

Losses on Monday accelerated late in the session after Reuters reported that Apple is targeting 2024 to produce a passenger vehicle that could include its own breakthrough battery technology.

Apple jumped over 3% on Tuesday, increasing the iPhone maker's stock market value by more than the entire value of General Motors.

Up over 600% in 2020, Tesla, run by Elon Musk, has become by far the world's most valuable automaker, despite production that is a fraction of Toyota Motor Corp, Volkswagen or General Motors.

With a market capitalization now at $590 billion, Tesla is the most valuable company ever admitted to the S&P 500.

(Reporting by Noel Randewich; Editing by Aurora Ellis)