During Wednesday, December 9, Tesla stock dropped 9.88%.
It is likely that the stock dropped firstly as the US International Trade Commission (ITC) delayed a decision in a case involving South Korean battery makers LG Chem, an electric vehicle battery supplier for Tesla, and SK Innovation.
Another reason was an announcement of China's Great Wall Motor about a plan to launch a new standalone brand for electric and smart vehicles.
In addition, Tesla CEO Elon Musk recently announced that the company would issue new shares to raise additional $5 billion. The news of the stock being about to be diluted could have some investors selling prior to the share issue in an effort to book their gains.
Moreover, news spread around during the European hours, before the US trading, that the construction of Tesla gigafactory near Berlin had been stopped. The reason was a court reason made upon the request of Eco activists. Namely, there are hibernating snakes in the forest that is being cut down to build the factory.
There was one more event going on in the markets, which caused the stock do lose value. Namely, all of the stock market sectors were in a sell off during Wednesday's trading hours. Large market capitalization stocks lost in many cases more than two percent of their price.