Stock FAQs

why is tesla stock going down

by Mose Waelchi Published 3 years ago Updated 2 years ago
image

Why is Tesla a risky stock investment?

1 day ago · For the second trading day in a row, Tesla ( TSLA-4.83%) stock drove lower on Monday, down 3.7% as of 10:50 a.m. ET. You can blame China for …

Why is Tesla stock currently doing so well?

Jan 25, 2022 · To be clear, today's drop isn't likely due to investor worry about tomorrow's earnings. In fact, Tesla, like many other technology names in the Nasdaq Composite index, has been moving lower all...

Why everyone should sell Tesla stock now?

Since early November 2021 Tesla's share price has dropped from $1,236 to the current (Feb. 3, 2022) $915 a drop of more than 25%. Comparing TSLA to …

Should you buy TSLA stock?

Feb 23, 2021 · Tesla's stock is selling off for several reasons: Bitcoin Tesla announced earlier this month that it had invested $1.5 billion in bitcoin. That helped feed the …

image

Key Points

With fourth-quarter deliveries significantly outpacing the prior quarter's, the company should convey impressive top- and bottom-line results.

NASDAQ: TSLA

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

What happened

Tesla ( TSLA 1.14% ) reports fourth-quarter and full-year 2021 earnings tomorrow after the bell, and the stock is down in advance of that. At 10:06 a.m. ET, Tesla shares were 1.75% lower after having dropped nearly 3% to start Tuesday's market session.

So what

To be clear, today's drop isn't likely due to investor worry about tomorrow's earnings. In fact, Tesla, like many other technology names in the Nasdaq Composite index, has been moving lower all month. After having hit the $1.2 trillion market cap threshold, Tesla shares are down almost 25% since Jan. 3, 2022.

NASDAQ: TSLA

But with a valuation still topping $900 billion, investors will want to hear good things from the company tomorrow evening. Tesla reported about $3.2 billion of net income in the first nine months of 2021, and in its full-year report, it will very likely let investors know it surpassed revenue of $50 billion for the year.

Now what

For the company to hit that revenue level, it will only need to match its third-quarter results. Since the company has already informed investors that it delivered 28% more vehicles in the fourth quarter than in the third quarter, results are likely to increase sequentially.

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.

How much did Tesla stock fall on January 26?

Shares of Tesla (TSLA) fell 6% Tuesday after closing down 8.5% Monday, wiping out its gains for the year. The stock closed at a record just above $883 on January 26 and has tumbled since. It fell low as $619 Tuesday, the first time Tesla (TSLA) shares have fallen below $700 since December 31.

How much did Tesla invest in bitcoin?

Tesla announced earlier this month that it had invested $1.5 billion in bitcoin. That helped feed the recent rally in bitcoin and by some estimates earned Tesla a quick $1 billion profit — more than it has ever made from selling cars in a single year.

Is Tesla the most valuable automaker in the world?

Tesla remains by far the most valuable automaker in the world, with a market value well above that of the eight largest automakers combined. Even with the recent decline. Tesla shares are up about 1,300% since October 2019, when it reported a third-quarter profit that surprised investors, sending shares on a tear.

Tesla Stock Falls Despite Beating Analyst Estimates

Shares of Tesla gained strong downside momentum after the company released its fourth-quarter report.

Recommended Stories

Cathie Wood, the star fund manager and chief executive of ARK Invest, took to CNBC on Thursday to defend ARK's woeful performance over the past year.

image
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 1 2 3 4 5 6 7 8 9