This story was first published on CleanTechnica
The conventional wisdom on Wall Street is that the stock market responds to only two things — fear and greed. That certainly seems to be the case with Tesla stock, which lately has been on a roller coaster ride of epic proportions. A few weeks ago, shares in Tesla were selling for more than $380, making the company worth more than Chrysler, Ford, General Motors, and BMW. Since then, the stock has tumbled down to $310 a share.
Tesla Stock Drops Like A Rock
Yesterday Tesla stock dipped below $330 a share on news that the company delivered a few thousand fewer cars in the second quarter than expected. Adding fuel to the Tesla fire was a new report from David Tamberrino, an analyst at Goldman Sachs, who lowered his projection for Tesla from $190 to $180 a share. Tamberrino cited increased competition from legacy automakers (Volvo announced yesterday all its cars will have a battery and an electric motor by 2019) and a belief that demand for the company’s premium offerings — the Model S and Model X — is softening.
“We remain sell rated on shares of TSLA where we see potential for downside as the Model 3 launch curve undershoots the company’s production targets and as 2H17 margins likely disappoint,” Tamberrino wrote in a note to clients Wednesday, reports CNBC. “This comes as demand for TSLA’s established products (Model S and Model X) appear to be plateauing slightly below a 100k annual run rate.”