The EV giant’s stock got caught in a global downdraft triggered by the fast-rising Japanese yen.
Shares of electric vehicle leader Tesla (TSLA -4.23%) were trading lower on Monday, amid global market volatility triggered by a sharp rise in the value of the Japanese yen.
Tesla’s shares were down as much as 12.4% in early trading on Monday, but recovered somewhat; as of 2 p.m. ET, the stock was down about 4%.
Image source: Tesla.
A “carry trade” gone awry drove a sell-off of Tesla and other big tech names
Tesla was one of several big-name stocks to get hit in early trading on Monday. The likely explanation: Investors rushing to close out a “carry trade” that had been very profitable in recent months — but that has abruptly swung the other way in recent days.
Investors had been borrowing money in Japan, where interest rates have been very low, and using it to buy stocks and other assets around the world. A popular version of this…
