What happened
Shares of Tesla (TSLA -3.55%) took a hit Wednesday, falling as much as 5.7%. As of 12:00 p.m. EDT, shares of the electric-car company were down about 3%.
The stock's decline comes amid a broader market decline in the overall stock market and news that a prominent short-seller is betting against Tesla stock.
Tesla Model X. Image source: Tesla.
So what
During intraday trading, the Nasdaq market index, which is weighted more heavily in tech stocks than other popular market indices, fell more than 2%. As a growth stock, it's no surprise Tesla is falling along with many high-growth tech stocks on Wednesday.
The overall market has been seeing pressure from rising U.S. Treasury yields.
Also likely affecting Tesla stock on Wednesday is news that short-seller Fahmi Quadi, who predicted the crash in Valeant Pharmaceuticals stock several years ago, is now forecasting a sharp decline in Tesla shares.
Now what
Tesla stock's decline on Wednesday adds to a large slide in the electric-vehicle company's shares recently. Shares are down about 20% in the past three months.
Pressure is mounting on the automaker to turn a profit, which management forecast it would be able to do in both its third and fourth quarters of 2018. Though Tesla's third quarter has ended, the company has yet to report its financial results for the period.
