Trading News

Tesla Stock Is Dropping Because 12/9 Is Much Ado About Nothing

Text size

Elon Musk

Hannibal Hanschke-Pool/Getty Images

Sometimes the stock market is odd. It looks like one of those odd days for


investors. The company managed to disappoint bulls by not doing something it never said it would do.

Shares of Tesla (ticker: TSLA) fell 5.2% on Thursday. The

S&P 500
fell 0.4% and the

Dow Jones Industrial Average
rose 0.1%.

No news is a disappointment because Dec. 9, 2021, according to social media, was supposed to be a big day for Tesla stock. The reason? Just because. The 12/9 date gained momentum in meme-like fashion with Tesla bulls wondering if there could be a product announcement or a stock split.

The 12/9 noise got loud enough to force people, including Barron’s, to research possibilities. However, the investors and analysts we queried didn’t think anything material was going to happen Thursday.

“We believe [12/9] will be a non event and no major risk to the stock ,” Wedbush analyst Dan Ives told Barron’s, adding, “it’s Tesla so who knows.” 

A stock split would require a board meeting. Tesla didn’t respond to a request for comment about its board meeting dates. The company holds about six board meetings a year. There is no way to know if one recently took place.

And at a Wall Street Journal conference earlier this week, CEO Elon Musk said there was no news he was aware of coming on Dec. 9. That took some wind out of bulls’ sails.

Still, what started out as fun banter might have led to stock-market disappointment, based on Thursday’s reaction.

There are other reasons Tesla is down Thursday, however. Other EV stocks have fallen high-growth stocks sell off. The

Nasdaq Composite Index
was down 1.3%–a worse drop than in the S&P 500. Stock in

Rivian Automotive

(RIVN), which had no 12/9 murmurs associated with it, was off almost 6%.

Overall, Tesla stock is still doing just fine. Shares have risen about 35% over the past three months, although they are still down about 17% since Musk said he would sell some stock.

The cessation of Musk stock sales will probably be the next big catalyst for the stock. The sales are an overhang. Institutional investors probably don’t want to add to positions, if they are inclined to, while the CEO has millions of shares to sell.

Musk has been selling for about a month after weighing into the debate on billionaire taxation. Selling stock means he has to pay taxes on capital gains. Musk also had expiring stock options to exercise. Stock options are treated like regular pay for tax purposes when they are exercised.

Write to Al Root at

Buffett-backed Nubank pops 20% in trading after blockbuster NYSE debut

Previous article

House Democrats want to raise SALT deduction cap to $80,000. What that means for your tax bill

Next article

You may also like


Leave a reply

Your email address will not be published.

More in Trading News