Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Stock Dropped on Monday

By Daniel Sparks - Apr 19, 2021 at 11:28AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A car crash involving a Tesla over the weekend may have spooked some investors.

What Happened

Shares of Tesla (TSLA 1.24%) were hit hard on Monday. As of 10:30 a.m. EDT, the stock was down 5.3%.

The growth stock's decline is likely due to two primary factors, including a car crash over the weekend involving a Tesla and a generally bearish day in the overall stock market -- particularly for growth stocks.

A chart showing a stock price falling sharply.

Image source: Getty Images.

So what

Two men died in a car crash involving a Tesla this weekend. There was no one in the driver's seat, according to Mark Herman, Harris County, Texas, Precinct 4 Constable. One person was believed to be in the front passenger's seat and the other was sitting in the back of the vehicle, Herman told The Wall Street Journal. The investigation of the car crash is not complete.

Tesla's driver-assist Autopilot, which reportedly may have been involved in the crash, is meant to be used with someone ready to take over the vehicle. Though the automaker intends to eventually release a full self-driving ability for its cars, it hasn't done so yet.

Also weighing on Tesla stock in Monday is a bearish day in the overall market. The Nasdaq Composite, for instance, is down almost 1% at the time of this writing.

Now what

Next week, investors will get insight into Tesla's recent business performance. The electric car maker reports earnings for its first quarter of 2021 after market close on Monday, April 26.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
$681.79 (1.24%) $8.37

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.