By Noel Randewich
(Reuters) – Shares of Tesla dropped 4% on Tuesday, down for a second straight day following the electric car maker’s debut in the S&P 500.
The stock has lost 10% since Friday, when it hit a record high as investment funds that passively track the S&P 500 bought $90 billion worth of Tesla shares so that their portfolios reflected the changes to the Wall Street’s most followed benchmark.
For a second day, Tesla’s stock contributed more than any other to the S&P 500’s decline. The S&P 500 was last down 0.1%.
Losses on Monday accelerated late in the session after Reuters reported that Apple is targeting 2024 to produce a passenger vehicle that could include its own breakthrough battery technology.
Apple jumped over 3% on Tuesday, increasing the iPhone maker’s stock market value by more than the entire value of General Motors.
Up over 600% in 2020, Tesla, run by Elon Musk, has become by far the world’s most valuable automaker, despite production that is a fraction of Toyota Motor Corp, Volkswagen or General Motors.
With a market capitalization now at $590 billion, Tesla is the most valuable company ever admitted to the S&P 500.
(Reporting by Noel Randewich; Editing by Aurora Ellis)