Why Tesla Stock Just Pumped the Brakes Today

fool2021-05-11

What happened

Shares ofelectric cartitanTesla(NASDAQ:TSLA)had tumbled 4.1% by noon EDT on Monday on a bevy of news reports that were at least tangentially related to the stock.

So what

This weekend, Elon Musk hostedSaturday Night Live. That should have been good news for Tesla -- the CEO did manage to plug his company in everything from the opening monologue to multiple skits. But Tesla's competitors didn't let the opportunity go to waste, either.

Over the course of the 90-minute show,Ford Motor Company(NYSE:F),Volkswagen(OTC:VWAGY), and Lucid Motor company'sChurchill Capital Corp IV(NYSE:CCIV)purchased air time to advertise their competing electric cars to folks tuning in to watch the Tesla CEO.

And speaking of competition, in another development that probably should have been good news for Tesla investors, Wedbush Securities took the opportunity to plug Tesla stock this morning. It said that "underlying consumer EV demand looks robust in China, Europe, with the U.S. playing catchup," and that "April and May demand look strong" for EVs, reportsTheFly.com. Unfortunately, in the course of recommending once again that investorsbuy Tesla stock, Wedbush also described rising competition from EV rivals such as Ford, Volkswagen, and Lucid. And it highlightedthe chip shortagethat is slowing automotive production around the globe, and reminded investors ofTesla's PR crisis in China!

Now what

So what started out as an endorsement of Tesla stock, and a prediction that Tesla shares will go to $1,000, may have ended up just spooking Tesla investors further.

The last thing investors want to hear, when investing in a stock that costs 665 times earnings (andapparently not from any earnings selling cars), is more bad news on what was supposed to be a good-news day.

免责声明:本文观点仅代表作者个人观点,不构成本平台的投资建议,本平台不对文章信息准确性、完整性和及时性做出任何保证,亦不对因使用或信赖文章信息引发的任何损失承担责任。

精彩评论

  • Frosty4ever
    2021-05-12
    Frosty4ever
    Lots of FUD out there.  PCA Secretary General Cui Dongshu on Tuesday said Tesla was an “excellent company” with a globally standardized product.“If there is problem, it would be universal instead of just being in one country,” he said. “So far, problems with Tesla cars can still be seen as an incident instead of any serious defect with its products.
  • JPUA
    2021-05-11
    JPUA
    Come on $650 3 more days 
  • 出来混迟早要还的
    2021-05-11
    出来混迟早要还的
    Cant't uds why Tesla dropped
  • Lifestyle
    2021-05-11
    Lifestyle
    Buy heavily when there is fear!! Don’t buy when the price keep going higher fear of losing out. That’s human emotion to investing 😊
  • yihann
    2021-05-11
    yihann
    BUY BUY BUY
  • shayenne
    2021-05-11
    shayenne
    please be green again
发表看法
24