We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of Tesla Motors, Inc. (TSLA - Free Report) have lost over 14% in the last two months. The stock had hit $254.53 on Apr 13, 2016, and stayed above $240.00 through the beginning of May but since then, has tumbled to $218.79.
What Caused the Slump?
Tesla starting losing share value prior to its earnings release on May 5. Investors were expecting weak results due to lower-than-expected vehicle deliveries in the first quarter. As expected, Tesla’s loss was significantly wider than projections. However, the electric carmaker announced plans to expedite production, which pulled up the stock on May 6.
Yet, many investors and analysts were not convinced about Tesla’s ability to ramp up production to 500,000 units by 2018 from 80,000–90,000 vehicle deliveries targeted in 2016. As a result, shares started losing value again and fell as low as $203.66 on May 12. While shares have regained somewhat since then, ups and downs continue.
Tesla’s shares had recovered to close at $235.52 on Jun 8. Thereafter, media reports claimed that the National Highway Traffic Safety Administration (NHTSA) had announced a probe into a possible suspension problem in Model S. Per these reports, the agency also raised concerns about non-disclosure agreements that the automaker asks customers to sign, which might discourage them from reporting safety issues.
Although Tesla denied these allegations and said that the NHTSA is only conducting a routine screening, the negative media reports pulled the stock down 2.6% on Jun 9. Later, it was also reported that Tesla has altered the language in its Goodwill Agreement to address the non-disclosure issue.
Nonetheless, shares dropped another 4.6% to close at $218.79 on Jun 10.
Tesla currently carries a Zacks Rank #4 (Sell). Some better-ranked automobile stocks include Lear Corp. (LEA - Free Report) , Superior Industries International, Inc. (SUP - Free Report) and Oshkosh Corporation (OSK - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
What's Behind Tesla's (TSLA) Recent Share Price Slump?
Shares of Tesla Motors, Inc. (TSLA - Free Report) have lost over 14% in the last two months. The stock had hit $254.53 on Apr 13, 2016, and stayed above $240.00 through the beginning of May but since then, has tumbled to $218.79.
What Caused the Slump?
Tesla starting losing share value prior to its earnings release on May 5. Investors were expecting weak results due to lower-than-expected vehicle deliveries in the first quarter. As expected, Tesla’s loss was significantly wider than projections. However, the electric carmaker announced plans to expedite production, which pulled up the stock on May 6.
Yet, many investors and analysts were not convinced about Tesla’s ability to ramp up production to 500,000 units by 2018 from 80,000–90,000 vehicle deliveries targeted in 2016. As a result, shares started losing value again and fell as low as $203.66 on May 12. While shares have regained somewhat since then, ups and downs continue.
Tesla’s shares had recovered to close at $235.52 on Jun 8. Thereafter, media reports claimed that the National Highway Traffic Safety Administration (NHTSA) had announced a probe into a possible suspension problem in Model S. Per these reports, the agency also raised concerns about non-disclosure agreements that the automaker asks customers to sign, which might discourage them from reporting safety issues.
Although Tesla denied these allegations and said that the NHTSA is only conducting a routine screening, the negative media reports pulled the stock down 2.6% on Jun 9. Later, it was also reported that Tesla has altered the language in its Goodwill Agreement to address the non-disclosure issue.
Nonetheless, shares dropped another 4.6% to close at $218.79 on Jun 10.
TESLA MOTORS Price
TESLA MOTORS Price | TESLA MOTORS Quote
Zacks Rank
Tesla currently carries a Zacks Rank #4 (Sell). Some better-ranked automobile stocks include Lear Corp. (LEA - Free Report) , Superior Industries International, Inc. (SUP - Free Report) and Oshkosh Corporation (OSK - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>