It has taken just one day for Tesla Inc.’s stock to erase the entire bounce it enjoyed over the last three days trading sessions of 2022, as disappointing deliveries data helped trigger the biggest selloff in more than two years.
The stock’s TSLA, -11.74% Tuesday drop knocked the electric vehicle maker’s market capitalization to 15th on the list of most valuation S&P 500 index companies.
On Tuesday, Tesla’s market cap fell below that of consumer products company Procter & Gamble Co. PG, -0.51%, with a current market cap of $3.55 billion, and oil giant Chevron Corp. CVX, -3.80% at $338.44 billion, according to FactSet data. Tesla currently sits just above Mastercard Inc. MA, -0.41%, which is at $331.53 billion. (See list of S&P 500’s 20 most valuable companies below.)
Tesla’s stock took an $18.05, or 14.7% dive in afternoon trading Tuesday to lead the S&P 500’s SPX, -0.56% decliners, after the company reported over the weekend that fourth-quarter deliveries that came up short of expectations for the third quarter in a row. It was on track for the biggest one-day decline since it plummeted 21.1% on Sept. 8, 2020, and for the lowest close since Aug. 12, 2020.
With about 3.16 billion shares outstanding as of Oct. 18, the stock’s decline shaved about $57.00 billion off Tesla’s market cap, to bring it down to $332.20 billion. That’s a far cry from the peak market cap of $1.24 trillion reached exactly one-year ago.
After the stock hit the deepest oversold reading in its history based on the widely followed Relative Strength Index momentum indicator on Dec. 27, following the longest losing streak in more than four years, it ran up $14.08, or 12.9%, over the past three days.
If there’s a bright side to Tuesday’s stock selloff, even though the price fell below the Dec. 27 closing price, the RSI was at 24.02, which is up from the Dec. 27 record low of 16.56.
That could be a preliminary sign of what chart watchers call “bullish technical divergence,” which is when prices make lower lows while the RSI makes a higher low. It’s still rather early to make that determination, however, as the stock needs to start bouncing again to see if RSI bottoms above the previous low.
Market caps of the Top 20 most valuable S&P 500 companies:
- Apple Inc. AAPL, -3.86% : $1.98 trillion.
- Microsoft Corp. MSFT, -0.06% : $1.77 trillion.
- Alphabet Inc. GOOGL, +1.46% GOOG, +1.45% : $1.15 trillion.
- Amazon.com Inc. AMZN, +2.13% : $860.51 billion.
- Berkshire Hathaway Inc. BRK.B, +0.15% BRK.A, -0.07% : $678.80 billion.
- Johnson & Johnson JNJ, +0.56% : $463.57 billion.
- Exxon Mobil Corp. XOM, -3.77% : $440.37 billion.
- Visa Inc. V, -0.20% : $425.79 billion.
- JPMorgan Chase & Co. JPM, +0.48% : $393.93 billion.
- Walmart Inc. WMT, +1.14% : $383.94 billion.
- Eli Lilly and Co. LLY, -0.54% : $358.04 billion.
- Procter & Gamble Co.: $354.60 billion.
- Nvidia Corp. NVDA, -1.92% : $349.20 billion.
- Chevron Corp.: $338.44 billion.
- Tesla Inc.: $332.20 billion.
- Mastercard Inc.: $331.53 billion.
- Meta Platforms Inc. META, +4.02% : $330.04 billion.
- Home Depot Inc. HD, +0.12% : $320.13 billion.
- Pfizer Inc. PFE, -0.11% : $286.44 billion.
- AbbVie Inc. ABBV, +0.10% : $286.37 billion.