Tesla stock fell another 4%, capping a rough week for investors

The pain of Tesla investors is endless as a tough week draws to a close.

Tesla shares fell another 4% today, dropping to multi-year lows and giving the stock a drop of nearly 16% for the week, as of midday.

Tesla investors blame CEO Elon Musk for the stock’s near-term weakness, with Twitter being the main source of criticism. Long-term shareholders see it as a distraction from Tesla management and Abandonment of the company During a critical period, which leads to downward pressure on the stock with recent stock sales.

Gary Black, a prominent long-term Tesla shareholder, believes today’s weakness may be due to more selling:

If true, this follows a filing this week in which Musk revealed that he sold 22 million shares of Tesla stock starting Monday and ending Wednesday. The sale value was approximately $3.6 billion.

This led the Wall Street analyst community to weigh in on the moves, which come at a bad time for Tesla stockholders.

Twitter’s nightmare continues as Musk uses Tesla as his ATM to continue funding red ink on Twitter which is getting worse by the day as more advertisers flee the platform with controversy [increasingly] Dan Ives of Wedbush wrote in a note yesterday. In late April, Musk said he had finished selling Tesla stock, instead doing the exact opposite and putting massive pressure on Tesla stock which has been dramatically underperforming in the market since Musk acquired Twitter in late October.

Goldman’s Mark Delaney echoed sentiments shouted out by Tesla investors this week — Musk should get back at Tesla and focus the company on the mission at hand, continuing the global replacement of ICEs with electric vehicles.

Delaney said that Tesla needs to return the company’s consumer focus to “core attributes of sustainability and technology,” in order to exceed its long-term expectations for Tesla.

Despite the near-term negative sentiment towards Tesla in the analyst community, one analyst sees Tesla as a buying opportunity.

“At current prices, we see Tesla shares as undervalued, trading in the 4-star region,” Morningstar analyst Seth Goldstein wrote in a note yesterday.

Despite the economic headwinds Tesla faces in China and the European Union, Goldstein believes federal IRA subsidies for electric vehicles will “benefit” Tesla in the US from next year. give [the IRA effect] And the company’s relatively small size of 1.2 million deliveries on a 12-month basis still has the potential to be strong demand even in an economic downturn. We still expect Tesla to deliver approximately 1.4 million and 2.1 million vehicles in 2022 and 2023, respectively. “

Pras Subramanian is a correspondent at Yahoo Finance. You can follow it Twitter and on Instagram.

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