Last Tuesday (8 September), electric vehicle and clean energy giant Tesla saw its share price freefall more than 20% – its largest fall since IPO in 2010 – after it failed to make the cut for inclusion within the S&P 500 index.
This wiped an eye-watering $70bn off of its market value.
It also came days after negative sentiment towards US tech stocks began to permeate markets, with the sector dragging Wall Street lower since last Friday and through to time of writing (9 September), while fellow tech 'superheroes' Apple and Amazon dropped 6.7% and 4.3% respectively as all major US indices fell into the red.
Had somebody chopped the past few days off of any ten-year line graph showing the performance of the tech-focused Nasdaq index, the S&P 500, the FAANG stocks or indeed the performance of Tesla's share price, investors would still be watching their returns stretch ever higher and wonder whether our 'new normal' has nipped the theory of mean reversion between growth and value in the bud.
However, in the throes of what has arguably been one of the strangest years most of us have ever experienced, the behaviour of the US stockmarket has also been unorthodox, given economic fundamentals appear to be at odds with the stockmarket's performance.
When it was announced that US GDP growth during Q2 was the worst on record, for example, the S&P 500 and Nasdaq indices reached new highs.
As Joe Amato, chief investment officer - equities at Neuberger Berman has questioned: "Is the market going to come back to the real world, or is the real world going to catch up to the market?"
Views on this are mixed, with some believing sky-high valuations must surely correct sometime soon as the pandemic continues to rear its ugly head, while others believe the strength of the individual tech companies will continue to drive stellar returns, regardless of the economic backdrop.
In a recent article on Investment Week's website, a number of fund managers highlighted the structural tailwinds Tesla will benefit from.
Co-manager of the Kames Global Sustainable Equity fund Malcolm McPartlin said one of the major structural trends to have "meaningfully benefitted" from the crisis has been the "shift away from a carbon-centred economy", with Tesla leading the pack as an "industry altering disrupter".
But turning to politics, there is an election looming in the US. With some calling for a Joe Biden victory, such as the team running the Manchester & London investment trust, and others ruling him out of the runnings as a "fuddy duddy" - as can be seen here - there are still unanswered questions surrounding the potential regulation of technology firms, and whether this could mark a turning point for the sector continuing to defy expectations.