Despite beating most analysts estimates in yesterday's upbeat third quarter financial disclosure, Tesla Motors' (TSLA) share price has taken a significant tumble. Down about 10 percent overnight, the company continued to be devalued as the day wore on, at one point hitting a low of $146.84.

The fall was so furious that it triggered (ironically) a NASDAQ "circuit breaker," temporarily restricting short-sale transactions. The price seems to have now stabilized and is, as of this writing, down about 14.67 percent from the opening, trading at $150.88.

Reasons given by market experts for the drop are varied, with some worried about battery supply issues slowing the California automaker's output, others citing the drop in revenue from ZEV credits and increased R&D spending for the Model X next year hurting future earnings.

Of course, many have said that the stock was somewhat overvalued after its red-hot 400 percent rise over the past year. Tesla CEO Elon Musk recently made the statement that the price was higher than the company deserves, though he did add that it will eventually surpass its current valuation.

Scroll down for video of an interesting discussion of the stock from Fox Business. If you feel like playing market analyst, let us know what your TSLA expectations are in the wake of this most recent "correction" in the comments below.



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  • 106 Comments
      CoolWaters
      • 1 Year Ago
      It's time you all started looking at Wall Street FRAUD very carefully. It time you started getting educated about the Real Current Rules Changes in the Market, where there is now Tier's of ordering. If you make a large number of trades, your trades get Preferential Treatment. This is a GAMED System. Do you all understand? Read a Book NOW: Dark Pools: High Speed Traders, A.I. Bandits, and the THREAT to the Global Financial System. Patterson.
        Rotation
        • 1 Year Ago
        @CoolWaters
        Programmed trading was as responsible for TSLAs overly inflated rise as it is for their overreacting fall here. It's rather annoying to see people only express their concern about programmed trading when it goes the direction they are not comfortable with. It's always a problem and a huge risk. It increases the risk for all buy-and-hold traders.
          CoolWaters
          • 1 Year Ago
          @Rotation
          I believe the HFT are spooking the stock, sending in a flood of bogus buy orders they cancel. They're moving the price of the stock in the short term, daily. They don't really determine the closing price, that's market sentiment. OR is it one huge hedge fund getting out, to get in in 5 seconds? Market sentiment should set the price, but, then again if 60% of the shares traded are AI Bots, then it's the Bots setting the price, as these Hedge Funds let them run wild.
        RGT881
        • 1 Year Ago
        @CoolWaters
        HFT exists, and it plays a monumental role for sure, but TSLA price was never supported by what was publicly disclosed on their financial statements. I mean those cats would have to be selling half a million of cars to warrant this sort of price. It's not a halo stock like Apple or Google, it's a fad, like Facial Spaces.
      rjwatsonmotors
      • 1 Year Ago
      Stock price reminds me of Krispy Kreme 10 years ago. One more fire and Tesla's done. Count on it. .
        BipDBo
        • 1 Year Ago
        @rjwatsonmotors
        Tesla is still far overvalued, so it's stock may tumble again, even fall much further. That doesn't mean that it will be done. The Tesla company, right now, doesn't need a high stock price. They are clear of significant debt, have capital stored up and they have their manufacturing and R&D machine running. Their stock could drop to $1 and it wouldn't stop them from producing cars. As for fires, I doubt many people care. The first fatality, which will happen sooner or later, despite how safe the car is, will like damage the company's momentum.
          BipDBo
          • 1 Year Ago
          @BipDBo
          Also regarding the fires, Tesla needs to accept that this is a problem, and they need to find a solution. I haven't heard of any similar fires from Leafs or Volts. I don't consider that Volt fire a concern when it was wrecked and intentionally left charged. That was just an experiment to see not if, but how long it would take to catch fire. I say that Volt did pretty well.
          BipDBo
          • 1 Year Ago
          @BipDBo
          m_2012, The wall and tree incident was likely reckless driving, but who knows. The first fire when hitting the piece of metal was just driving at normal speed. The fire that happened yesterday, also at ordinary Leaf speeds. Do you actually think Tesla is having these problems while Nissan and Chevy have not because nobody's ever crashed a Leaf or Volt? Stop hypocritically accusing ignorance while your own head is stuck in the sand. Tesla is a newborn company that is just learning to build cars, going up against much bigger companies with a century of experience. The S is a good car, but so many people foolishly has put faith in it and thinks that it's perfect. It can actually have flaws. Do a quick image search on "wrecked Nissan Leaf" or "wrecked Chevrolet Volt."
          m_2012
          • 1 Year Ago
          @BipDBo
          When was the last Leaf in a high speed collision? This is a performance car. The first fire was from a high speed collision with an I-beam. The second was from a high speed collision with a wall and a tree. The Model S has been in many high speed collisions and also the government test without a single fire. You speak from ignorance. Read a little and learn about the subject.
        Nick Kordich
        • 1 Year Ago
        @rjwatsonmotors
        There was a fire yesterday. The driver wasn't injured in the accident and says the car saved his life, but I'd expect a dip in the stock as the incident gets broader exposure. Details are sparse, but there are a few pics for virtual rubberneckers to wildly speculate about: http://www.teslamotorsclub.com/showthread.php/23581-Ugh-Another-Model-S-fire-2013-11-06
      macutty
      • 1 Year Ago
      Dear tesla/ev fanbois: being a lover of the company doesn mean you have to defend share price fluctuations. Share value doesnt necessarily reflect the quality of a companies product. Stop being so sensitive and defensive about Tesla and leave the financial analysis to people who actually know something about it. You just look silly and insecure.
      RoyEMunson
      • 1 Year Ago
      Why so much negativity? Its a growth stock... and bound to fluctuate wildly at times. Im gonna hold onto my shares like an experienced investor and not sweat the swings on its way to the top. Besides, if lose everything im only out a few thousand. I still feel I have more to gain than to lose.
        Marcopolo
        • 1 Year Ago
        @RoyEMunson
        @ RoyEMunson Roy, if you are not a speculator, and believe in the company, then keep your stock, especially if you have only a relatively small investment. Since Tesla first went public, I have recommended this stock as a buy, at $148 I thought it was time to hold, and at $158 time to sell. Tesla stock is no longer purchased by major investors, most of whom have cashed in and departed, but by an army of small investors buying on emotion. There's nothing wrong with investing in a company, and product, you believe in as a private individual, but totally irresponsible for investment managers, who are responsible for investing other peoples money to maximise yield and return. Professional investors will always value any stock based on "price to earnings" ratio, or sometimes on assets or merger/tTO potential. Tesla doesn't conform to any of those criteria. Tesla is valued on 'potential', similar to most new tech, dot.com-silicon valley type stock, with an added new category of ideologically motivated investors. As long as Tesla keeps growing, and creating excitement, this army of supporters will continue to invest. Sometimes, with enough investment and momentum, the dream does become reality ! So good luck Tesla !
      Grendal
      • 1 Year Ago
      Any stock that has a 10% loss in one day trips this "breaker." So it happens daily. I originally sold TSLA at $159 (a bit low at the time since it went to $190) and I see this as a buy in opportunity. The stock market is gambling and this is a good example of why you shouldn't invest anything you are unwilling to lose.
        Rotation
        • 1 Year Ago
        @Grendal
        I agree about the unwilling to lose. Unfortunately I think a lot of strong EV believers (and perhaps patriots) are in with money they can't afford to lose. And so those people get rather angry when others aren't as sanguine about the stock. They commenters endangering money they can't afford to lose and instead of realizing it is their own mistake for putting that money in play they find other outlets for their apprehension.
        John Ward
        • 1 Year Ago
        @Grendal
        I sold a little bit above $100. I'm actually waiting for a correction now so I can get back in. The current price is pure speculation and it's going to have to come back to reality at some point.
      CoolWaters
      • 1 Year Ago
      This is another example of AI programs RESONATING and creating a Flash Crash, because these markets are no longer tailored to Human Traders, they are now designed to support Program Trading. This is a War of the AI. The markets are of course, designed to allow these AI to eat Human Traders alive. - 90% of all orders on the markets are CANCELLATIONS. - 60-70% of the activity is now AI ( Artificial Intelligence ) programmatic traders. WHERE IS THE SEC.
      Rotation
      • 1 Year Ago
      Yes, those are subsidies to Tesla. The point of a subsidy is to reduce the price to the customer of something, so they will buy it in larger numbers than they would at the unsubsidized price. Whether Tesla receives the money directly or not, they are receiving it. The Feds are paying $7500 of the price of every one sold in the US. The entire purpose of the subsidy is to increase sales of electric cars in the US. And it's working. And Tesla, as a seller of electric cars is benefiting. Look at it this way, to sell the same number of cars without the subsidy in the US, Tesla would have to cut their price $7500. That would have reduced their income by 5,000 x 7500 this quarter, or about $37M. That would have doubled their losses (using GAAP) or wiped out their entire $15M profit (non-GAAP) and turned it into an equal-sized loss. And that's not even counting any state subsidies. And the same goes for Norway. That doesn't even give money directly to anyone (customer or Tesla), but by not charging a tax on those cars, it makes the car much cheaper than it otherwise would be, spurring sales. The Model S would not have been the #1 selling car in Norway without that subsidy. Nor would the LEAF be this month. As the number of cars sold goes up, economies of sale kick in and EVs will become cheaper to produce, so that the subsidies will not be needed, and they will be phased out. The same with up-front subsidies in solar panels, which have fallen to 0 in many places now due to panels being so much cheaper than before.
      Dean Hammond
      • 1 Year Ago
      Grndal....thats pee in a bucket...they will nedd substantuially MORE than that to stay alive let alone develop new product....
      Grendal
      • 1 Year Ago
      Don'tcha think?
      Car Guy
      • 1 Year Ago
      Arrogant east coast liberal I'm guessing. A lot of good Americans live in those "fly over" states
      Nick Kordich
      • 1 Year Ago
      The reasons for Tesla to build a battery factory are for cheaper access to batteries or to have control of proprietary IP at the cell or chemistry level. At this phase, the company is clearly better off focusing on (vehicle) production, reflected with their recent agreements with Panasonic, Samsung and LG. They will be more than happy to meet Tesla's demand and have far more developed supply chain ties to enable such growth. Yes, Musk's talking about building a battery factory - tomorrow he'll be talking about building a hyperloop and the day after a Mars colony. He plans long term, but even more to the point, he doesn't exercise the self-discipline that most CEOs do when talking in public about things that make nervous investors edgy. He's seeing more benefit from a charisma campaign/cult of personality, and that requires that he pours a certain amount of fuel on the fire to keep it going.
      BipDBo
      • 1 Year Ago
      TSLA is again dropping today, so far, by over $10. At 2:00 PM on 11-7 it is at 140.87. This might be, in part, due to the third fire, but this is just starting to make it through the news / propaganda machine. I know this isn't good news for most to hear, including myself, so I fully expect an epic down voting.
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