The misery continues for Tesco as its share price dropped yet again in early morning trading.
Tesco shares fell by over two per cent, before recovering slightly to a price of 176.03 pence per share – a 1.8 per cent drop.
The supermarket’s stock has taken a pummelling in recent weeks, falling by well over 20 per cent since the company stunned the City last month by revealing a £250m overstatement in its first-half profits.
Following the shock revelation on 22 September, Tesco’s share price nosedived to its lowest point in over a decade.
Tesco's share price this morning (Source: Yahoo)
Yesterday legendary investor Warren Buffett delivered another blow to the beleaguered company by describing his 3.7 per cent investment in the supermarket as a “huge mistake”.
Tesco, which has delivered three profit warnings to investors this year, has been put under full investigation by the Financial Conduct Authority (FCA).
The finance watchdog will look into the accounting error that led to the mammoth profit overstatement. Tesco has blamed the mishap on the “accelerated recognition of commercial income and delayed accrual of costs”.