Tesla Burning: Down 30% In Days As Markets Blindsided By Worst Weekly Selloff Since The Financial Crisis

Stocks take the stairs up, and the elevator down… usually. In Tesla’s case, they took the elevator both up and then back down again.

While Tesla longs may have won the last month or two as the stock ripped from $300 to almost $1000 on a massive short squeeze – they are now starting to learn the very important (and very overdue) adage that when the tide goes out, you see who is swimming naked.

Yes, every millennial and annoying family member crowing over the last 2 months at family gatherings and social events about what investing geniuses they are for buying Tesla is now rushing to slam the sell button and get ahead of what is likely to be continued, non-stop selling, as the coronavirus pandemic continues to grind the global economy to a halt and strike the investing public with fear of the many unknowns that still remain.

Tesla is down about 12% today so far and about 30% off its 52 week highs. 

And Elon Musk, who had the chance to shore up his company’s balance sheet and pay off all his debt at a ridiculous valuation just weeks ago, may now be facing the reality that the train has left the station. 

Meanwhile, according to Robintrack which keeps track of bagholders retail investors – people haven’t even started to lighten up on the name yet…

…which means we may only be seeing the very beginning. 

We always knew that people who had entered the financial world over the last 10 years would eventually have to learn that markets simply don’t always go up, with no questions asked.

Now, it’s becoming clear that Tesla may wind up teaching that brutal lesson to many who desperately need it.