Jim Watson | AFP | Getty Images
Tesla stock fell more than 9% on Thursday, building on the stock's recent losses after the company's largest outside shareholder trimmed its position and after the automaker announced up to 5 billion in a new stock offering . USD to raise.
With the decline on Thursday, the stock is more than 18% below the close of trading on Monday, a day the stock rose sharply after the stock split.
Tesla stock rose to a new intraday all-time high of $ 502.49 on Tuesday. The stock ended Tuesday's session 4.67% lower when Tesla announced it would raise up to $ 5 billion through stock offers "from time to time" and "in the market".
On Wednesday, Baillie Gifford, Tesla's largest outside shareholder, announced that he had reduced his position in the company from around 6.3% to less than 5%, according to FactSet. The company said it intends to remain a long-term shareholder in the company and the sale was entirely due to portfolio restrictions. Tesla fell 5.8% on Wednesday.
Recent weakness does little to contain Tesla's more than 400% surge this year by Wednesday's close, but suggests that some of the momentum behind the stock's record run may be slowing.
In a statement to clients on Wednesday, Credit Suisse said four key factors drove the rapid appreciation in stocks, including short investors who are covering their positions and passive investors who are buying stocks before they potentially get into the S&P 500 are included. In other words, reasons beyond company fundamentals are what drive stock performance.
However, the company said September could prove to be a "catalyst-rich month for Tesla," with the company's battery day approaching, among other things.
Part of the latest share run was due to the company reporting record vehicle deliveries in July and a fourth straight quarter of earnings. However, the stock also rose more than 80% between the announcement of a stock split on August 11 and when it actually went into effect on August 31, although stock splits are purely cosmetic.
"After an absolutely insane move that saw the stock jump more than 75% on the news of nothing but the news of a stock split, Tesla shares are in the middle of a hangover as the stock is heading for its third daily consecutive decrease of around 5%, "said the bespoke investment group in a statement to clients on Thursday.
Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.