Tesla's stock loses half its value.
John Goreham's picture

Tesla Stock Will Have To Grow 100 Percent To Return To Its Previous High Value

In less than one year Tesla's stock has dropped by half. It will have to double in value to reach its prior high point.
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In June of 2017, Tesla stock was selling at just under $400. At the close of business on June 23, 2017 the stock price was $383.45. Today, Tesla's stock has been trading at under $199 off an on through the morning. In less than one year, the stock has dropped by half and Tesla's stock value will now have to grow by 100% just to reach its prior high point. What is causing a stock fiercely defended by loyal fans to be such a dog?

tesla stock 199

Tesla Stock Drop - NTSB Findings
Since last week, there has only been one major Tesla news story - Another Autopilot death. Eerily similar to a fatal crash in 2016 that killed the occupant, this one is another case of a Tesla hitting a huge-clearly visible object in its path without slowing. Every model that Tesla presently sells has now killed an occupant while Autopilot was engaged. At last count, the system had smashed directly into firetrucks(3), police SUVs, median barriers, and semi-trailers(2). Tesla fans still defend the system, but the fact is that if every car on the road today had Autopilot thousands of these types of crashes would be happening. So who blames Autopilot fatalities for the low stock price? CNBC for one.

Tesla Stock Drop - Scary Financials
Tesla's financial picture was debatable. Was the latest cash-raising round good or bad? Is the future bright or gloomy? It was hard to tell. Then Elon Musk pretty much cleared up the confusion in an e-mail that told Tesla employees that the situation was dire. It was nice of him to warn them. He could have warned investors too, but opted not to. Too busy with spaceships and other projects to be bothered? So who blames Tesla's stock crash on this scary view? Reuters does, but we all know they are in on the "short-selling scam."

Tesla Weakening Demand
Tesla is still selling a LOT of compact premium sports sedans. That is is a worthy objective. The problem is Tesla wants mainstream-level sales and one model selling at a rate of about 10,000 units per month is peanuts compared with pickup trucks that sell at 5X that rate and cars the same size as the Model 3 that sell at three or four times that rate. So who blames weakening demand for Tesla's low stock price? Tesla's advocacy publication, Elektrek for one.

Feel free to offer your own opinion on Tesla's stock price situation in the comments below. Please, let's not make it personal. We are only summarizing what respected mainstream news media, respected journalists, and Tesla fan sites are claiming is the reason for Tesla's stock crash.

Related Story: Why Hasn't NHTSA Forced Tesla To End Autopilot Sales? The Simple Answer

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