Tesla and Apple’s stock prices are presently experiencing a significant amount of selling pressures falling below their recent record high.
While the shares of Apple plunged more than 3% from its record high on Wednesday, Tesla also dropped over 11% of its stock price shortly after the opening of the U.S trading session.
Both companies have recently enjoyed huge gains following their most recent announcements of their stock splits, which was targeted to attract more retail investors.
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Nairametrics about two days ago broke the news on both technology companies having recorded impressive gains in recent months, with Tesla advancing more than 474% this year and Apple gaining 76%.
Apple still remains the only publicly listed U.S. company with a market capitalization of over $2 trillion, while Tesla an electric vehicle maker that aims to deliver just about half a million cars this year has overtaken major corporations such as Walmart Inc., Visa Inc., and Johnson & Johnson.
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Tesla’s plunge today was also triggered when one of its largest outside shareholder Baillie Gifford reduced its position in the company to less than 5% from 6.3%.
In a statement, Baillie Gifford in spite of reducing his Tesla’s stock portfolio remained a long-term believer in Elon Musk’s firm, and that the reduction in ownership according to him was simply due to portfolio limitation.
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“The substantial increase in Tesla’s share price means that we needed to reduce our holding in order to reflect concentration guidelines which restrict the weight of a single stock in clients’ portfolios,” Baillie Gifford’s James Anderson said in a statement.
