Shares of Clean Energy Fuels (CLNE 0.00%) plunged as much as 22.7% in trading on Tuesday as the market took a turn for the worse. Shares recovered some of those losses late in the day but were still down 10.8% at 2:05 p.m. EST.
There were a few factors working against the company today. One was that oil prices dropped early in trading, which coincided with the low in Clean Energy Fuels' shares as well. However, oil gained back its losses and is now flat for the day.
Another thing hurting the stock is a market sell-off that's hit clean energy and growth stocks more than the rest of the market. Investors are worried about rising interest rates and slowing growth in the economy, which could put pressure on capital-intensive companies like Clean Energy Fuels.
Market sell-offs happen, and sometimes stocks like Clean Energy Fuels are hit harder than others. But I don't see a reason to change your investment thesis. And if you're bullish on the stock long term, this could be a great buying opportunity. There seem to be some tailwinds in renewable fuels and natural gas fuel adoption that will keep Clean Energy Fuels growing for many years.