Tesla Stock Hit By Negative News, Bears Rejoice
Bernstein downgraded Tesla's stock to underperform. A 150% increase in a stock price puts the odds of a crash at 80%. Shares of the electric-vehicle maker fell as much as 14 per cent to US$605 in New York before a wider sell-off prompted a market-wide trading halt. The agency also said it was unclear if the car's automated control system was active at the time of crash.
It goes by the name of the BetaShares NASDAQ 100 ETF (ASX: NDQ) NDQ holds all of the big tech names, including the FAANGs, Tesla and Microsoft. And hedge fund manager John Thompson of Vilas Capital Management told MarketWatch that unless Elon Musk pulls a rabbit out of his hat,†Tesla will be bankrupt within four months.
For now, most investors appear just too pleased with the Tesla stock and warnings aside, look to keep a firm grip on it. Tesla shares stumbled after its eccentric CEO Elon Musk tweeted on Friday that the company's stock price was too highâ€, triggering a free fall in stock prices.
Tesla's stock closed at $US274.96 on Friday, down from a record high of $US385 in September Elon Musk 2017. Mr Musk does not take a salary but the pay scheme approved by shareholders in 2018 would see him make as much as $56bn if Tesla's value ultimately climbs as high as $650bn.
In addition to Tesla stock, we analyze three other top stocks for your watch list: Nvidia (NVDA), Dexcom (DXCM) and Vertex Pharmaceuticals (VRTX). In the classical analysis, stock prices indicate expectations of a company's future profits. But if a stock rises steadily above the price at which the short-sellers initially sold it, they are sitting on a loss.
Last week, a Tesla owner sued the company for limiting old batteries' charging capacity Tesla bears rejoice whenever negative news hits the company. Shares have now dropped almost 45pc since a peak in mid-January that valued the company at $167bn. With almost 2 decades of skin in the game and despite competition from other motor vehicle companies such as General Motors (NYSE: GM) and Ford (NYSE: F) in recent years, Tesla is still the biggest name in electric-powered cars.
There's a new rocket ship from Elon Musk: Tesla's stock. So, in just 5 months, the stock went from being a market darling with $3,000 price targets to being the most hated with $10 price targets. Bottom line: Nvidia's aggressive stock behavior has created looming trouble for today's more carefree investors.