Tesla's stock price has always been volatile, but the past few days have been especially rocky, flaming its way down from a high on Monday of $199.17 to a low yesterday of $173.48. Considering its 52-week high of $286.65, and the fact that it hasn't seen this level since January of 2014, the numbers are enough to make one sit up and take notice.
The reason for this week's significant stumble appears to be most strongly linked to a note from Morgan Stanley's Jonas Adams on Monday. The analyst, who's usually quite bullish on TSLA, lowered his future outlook by $117 – from $450 to $333. According to The Motley Fool, the missive read, in part "We are lowering our price target by 26% to reflect our lowered volume expectations for Model X and Model 3, a lower valuation for Tesla Energy, and accelerating competition in the mobility business." The revised estimate, of course, still places the price a decent amount above where it stands today.
It could also be speculated that some of this decline – a very small part – might also be linked to reports that CEO Elon Musk recently cancelled the Model X reservation of a customer after he published a scathing indictment of the company's Model X launch event entitled, "Dear @ElonMusk: You should be ashamed of yourself." The X-order abrogation has been getting some attention after the customer followed up with a further provocative post, "Banned by Tesla!." For his part, Musk seems slightly bemused by the number of headlines the issue has created, Tweeting, "Must be a slow news day if denying service to a super rude customer gets this much attention."
Depending on how one sees the half-emptiness/fullness of the Tesla teacup, and the tempest therein, one might want to consider placing an order to buy/sell for first thing in the morning. Or, of course, wait until the automaker releases its report on its fourth-quarter financials next Wednesday, when we expect a significant amount of light will be shone on the outfit's current situation and near-term outlook. As usual, it is important to note that we can not offer investing advice – see a professional. Also, the staff of Autoblog holds no direct financial position in Tesla, or any other automaker.
The reason for this week's significant stumble appears to be most strongly linked to a note from Morgan Stanley's Jonas Adams on Monday. The analyst, who's usually quite bullish on TSLA, lowered his future outlook by $117 – from $450 to $333. According to The Motley Fool, the missive read, in part "We are lowering our price target by 26% to reflect our lowered volume expectations for Model X and Model 3, a lower valuation for Tesla Energy, and accelerating competition in the mobility business." The revised estimate, of course, still places the price a decent amount above where it stands today.
It could also be speculated that some of this decline – a very small part – might also be linked to reports that CEO Elon Musk recently cancelled the Model X reservation of a customer after he published a scathing indictment of the company's Model X launch event entitled, "Dear @ElonMusk: You should be ashamed of yourself." The X-order abrogation has been getting some attention after the customer followed up with a further provocative post, "Banned by Tesla!." For his part, Musk seems slightly bemused by the number of headlines the issue has created, Tweeting, "Must be a slow news day if denying service to a super rude customer gets this much attention."
Depending on how one sees the half-emptiness/fullness of the Tesla teacup, and the tempest therein, one might want to consider placing an order to buy/sell for first thing in the morning. Or, of course, wait until the automaker releases its report on its fourth-quarter financials next Wednesday, when we expect a significant amount of light will be shone on the outfit's current situation and near-term outlook. As usual, it is important to note that we can not offer investing advice – see a professional. Also, the staff of Autoblog holds no direct financial position in Tesla, or any other automaker.
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