Tesla Sinks in Worst 1-Day Loss on GM-Nikola Deal, S&P Snub
- Carmaker wasn’t added to prestigious benchmark on Friday
- Shares fall 21% on Tuesday, erasing billions in market cap
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Tesla Inc. shares fell the most ever Tuesday after the electric-vehicle maker missed out on being included in the S&P 500 Index, taking investors who had bet on its entry to the benchmark by surprise.
Tesla shares closed down 21% to $330.21, shaving $82 billion from its valuation. Declines started premarket and worsened as General Motors Co. said it would take a $2 billion equity stake in Nikola Corp. and partner with the fledgling truck maker to engineer and manufacture its Badger pickup. Meanwhile, Tesla said it took just a few days for it to complete its $5 billion share sale, which had set off a three-day losing streak for the stock after it was announced last week.