Question 2
NASDAQ: TSLA is a listed company on the NASDAQ. You are interested in analyzing the impact of information on share prices. To answer this question, consider the time-period and daily share price of the company for the period 1st January 2019 to 1st of August 2019.
Carefully identify at least three major news stories, events or issues related to the company that impacted the share price by 5% or more on the day of release (this can be intra-day or close price) and why they impacted share price in the way that they did.
You should include a price chart of some sort, with annotation, which clearly shows each major news impact on the price. Marks are allocated for relevant news story, clearly annotated diagrams and discussion as to why the identified news impacted share price (5 Marks).
Consider the news items that you have picked. Evaluate the impact of each item on share price (in the context of market efficiency) and why it impacted the share price in the manner that it did. Are there other considerations (e.g. theoretical, market, behavioral) besides the identified news article that would impact the share price? (15 Marks).
Sample Solution