Wednesday, November 6, 2013

Tesla Motors: Heavy Trading Comes on Down Days

Tesla Motors’ (TSLA) stock got hammered today after the upstart automaker released earnings–and the plunge came on heavy volume. Some 31 million shares of Tesla changed hands, the third most ever.

Miller Tabak’s Andrew Wilkinson compares today’s onslaught to previous episodes of high-volume selling in Tesla:

Record volume was set at 37 million shares on May 14 as the share price closed at $83.24 and lower on the day by 3.9%. The swell in morning volume looked healthy as the stock surged by 5% before settling lower.

On July 16 shares fell by around $20.00 following the opening bell before settling lower by 15% at $109.15. Volume that day was quite steady throughout the session.

The November 6 session looks a little different with heaviest volume at the outset dwindling notably throughout the day. However, that was insufficient to stop a late day rebound dead in its tracks for the shares to close 14.5% lower and close to session lows.

I guess Tesla was a short after all.

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