Actions of Tesla (NASDAQ: TSLA) fell on Monday, down 7.2%. However, at 10:45 a.m. EST, the stock was down 4%.
The drop in the growth stock is probably mainly due to a bearish day across the market. Plus, stocks are taking a hiatus after a huge surge since Christmas.
Tesla shares have risen every trading day since Christmas, giving the stock more than a record 11-game winning streak. Even including today’s decline, stocks have risen nearly 29% since Christmas. Capturing the incredible momentum of the stock, Tesla’s market cap grew from around $ 670 billion to over $ 800 billion in 2021 alone.
It’s only natural for stocks to retreat after such a wild move.
A day of decline in the global market is also weighing on the stock. As of this writing, the S&P 500 and Composite Nasdaq are down 0.5% and 0.8%, respectively.
Investors will receive more meaningful news about Tesla when the company releases results for its final quarter. Tesla typically releases its fourth quarter results around the end of January. Investors will be looking to see how the company’s record deliveries for the period translate into financial results. Investors will also be looking for management to indicate that deliveries for the year 2021 will be significantly higher than the nearly half a million vehicles Tesla delivered in 2020.