Tesla and Apple’s stock prices are presently experiencing a significant amount of selling pressures falling below their recent record high.
While the shares of Apple plunged more than three per cent from its record high on Wednesday, Tesla also dropped over 11 per cent of its stock price shortly after the opening of the United States trading session.
Both companies enjoyed huge gains following the most recent announcements of their stock splits, which was targeted to attract more retail investors.
Two days ago, both companies have recorded impressive gains in recent months, with Tesla advancing more than 474 per cent this year and Apple gaining 76 per cent.
Apple still remains the only publicly-listed US company with a market capitalisation of over $2tn, while Tesla, an electric vehicle maker that aims to deliver just about half a million cars this year, has overtaken major corporations such as Walmart Inc., Visa Inc., and Johnson & Johnson.
Tesla’s plunge was also triggered when one of its largest outside shareholders, Baillie Gifford, reduced its position in the company to less than five per cent from 6.3 per cent.
In a statement, Gifford in spite of reducing his Tesla’s stock portfolio remained a long-term believer in Elon Musk’s firm, and that the reduction in ownership according to him was simply due to portfolio limitation.
“The substantial increase in Tesla’s share price means that we needed to reduce our holding in order to reflect concentration guidelines which restrict the weight of a single stock in clients’ portfolios,” the statement said.
