Tesla Shares Fall Amid Tech Selloffs and Jumia Shares Sharply Fall After Stock Offering
On Thursday, shares of Tesla fell sharply, closing down 6.93%.
Shares of the electric vehicle maker fell after a bearish day in the market for tech stocks.
On Wednesday, the Nasdaq Composite and S&P 500 closed at record highs after the Federal Reserve said it would keep interest rates near zero through 2023 and predicted a quick economic recovery. Gains in tech stocks were erased on Thursday as the Nasdaq composite plunged 3.02% and the S&P 500 fell 1.48%.
Additionally, the 10-year Treasury yield rose to 1.75% on Thursday amid the Fed’s continued support for the economy and tolerance for temporary inflation this year.
Despite the stock’s retreat Thursday, Tesla’s shares are up over 650% in the past 12 months.
On Thursday, shares of Jumia Technologies plunged, closing down 15.14%.
The African e-commerce company’s shares fell after a bearish day in the market for tech stocks, and after the company filed a secondary stock offering.
Jumia said it would sell roughly 9 million American depositary shares currently valued at nearly $400 million in a filing Thursday morning. The offering would result in a 10% dilution of existing shareholders. The revenues, according to Jumia, will be used for general corporate purposes.
Jumia, Africa’s leading e-commerce company, is still burning cash as it invests in African countries’ infrastructure, resulting in a free-cash-flow loss of over $100 million last year.
Shares of Jumia are up over 1,500% in the past 12 months.
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