Stock FAQs

why is the tesla stock going down

by Dr. Elza Keeling I Published 3 years ago Updated 2 years ago
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Why is Tesla a risky stock investment?

May 09, 2022 · Tesla (NASDAQ:TSLA) stock is falling on Monday despite a lack of news company from the electric vehicle (EV) company. Instead, it looks like the drop in TSLA stock today comes from wider issues ...

Why is Tesla stock currently doing so well?

18 hours ago · The EV maker fell by as much as 7.4% this morning and was down by 1% as of 12:28 p.m. ET. ... Why Tesla Stock Tapped the Brakes on …

Why everyone should sell Tesla stock now?

Apr 11, 2022 · For the second trading day in a row, Tesla (NASDAQ: TSLA) stock drove lower on Monday, down 3.7% as of 10:50 a.m. ET. You can blame China for that. Tesla's problems in China began about a month ...

Should you buy TSLA stock?

Dec 16, 2021 · Shares of Tesla ( TSLA -7.16%) tumbled on Thursday, declining more than 4% as of 12:40 p.m. ET. The stock is likely down because of knee-jerk selling in many growth stocks on Thursday, following...

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Why Tesla stock drop?

Stocks sold off last month as investors weighed risk factors including high levels of inflation, upcoming interest rate hikes, and the war between Russia and Ukraine. Tesla stock also saw a precipitous drop at the end of the month after it was announced that Twitter would accept Musk's $44 billion acquisition bid.May 3, 2022

Why is Tesla stock not good?

Notable risks include Tesla cars being too expensive with tax breaks and that the construction of its Gigafactory (battery factory) taking longer than expected. More broadly speaking, Tesla faces a competitive environment from both legacy automakers and other EV manufacturers.

Will Tesla stock split again in 2022?

Not until after the 2022 annual shareholder meeting. If that's in October, that means Tesla stock wouldn't split until the end of the year at the earliest.Mar 28, 2022

Is Tesla a good stock to buy 2021?

TSLA's growth prospects also seem to be very promising. In 2021, Tesla produced over 930,000 cars. Moreover, it aims to reach 20 million EV sales per year by 2030 , and at Tesla's current growth rate, it is definitely possible.Mar 18, 2022

NASDAQ: TSLA

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What happened

Shares of Tesla ( TSLA -2.21% ) tumbled on Thursday, declining more than 4% as of 12:40 p.m. ET. The stock is likely down because of knee-jerk selling in many growth stocks on Thursday, following the Federal Reserve's commentary yesterday about its expectations to raise interest rates next year.

So what

Many growth stocks were trading lower on Thursday. This is partly evidenced by the tech-heavy Nasdaq Composite 's near-2% decline as of this writing. The index has more growth stocks in it than the S&P 500, which was down a lesser 0.5% as of this writing.

NASDAQ: TSLA

While Tesla stock has been battered and bruised in recent trading days, the stock is still up a market-beating 32% year to date. And that's on top of a nearly 700% gain in 2020. Shares, therefore, may simply be taking a breather after an epic run-up over the last two years.

Now what

Looking ahead, investors will be looking for Tesla to report strong vehicle deliveries for its fourth quarter. The company typically reports fourth-quarter deliveries within the first three calendar days of each year. So, investors can expect an update on Tesla's quarterly deliveries by Jan. 3, 2022.

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Key Points

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

NASDAQ: TSLA

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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.

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What happened

Between a price target hike from Bank of America and some very positive news on electric car battery ranges, Thursday should have been a great day to own Tesla ( TSLA -2.21% ) stock -- but it's not working out that way.

So what

But let's begin with the good news. This morning, analysts at Bank of America raised their price target on Tesla stock to $1,300 a share, as StreetInsider.com reports. On the one hand, the news isn't as good as it could have been, because BofA stuck with its neutral stock rating on Tesla.

NASDAQ: TSLA

More unambiguously good news today comes out of Michigan, where battery start-up Our Next Energy, which goes by the nickname ONE, says it has just conducted a road test of a Tesla Model S sedan retrofitted with a prototype ONE battery -- and gotten the car to go 752 miles on a single charge.

Now what

Now, that all sounds like fantastic news for Tesla. From an investing angle, one investment bank thinks its stock is worth a lot more than it costs today. From a business angle, another company has independently come up with a battery that -- if produced at commercial volumes -- could dramatically increase the range of Tesla's cars.

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What happened

Shares of electric car maker Tesla (NASDAQ: TSLA) are down on Monday. The growth stock fell as much as 5.6% but was down 4.8% as of 10:55 a.m. ET.

So what

Highlighting the challenging day for the overall market on Monday, the S&P 500 was down 0.6% as of this writing. The tech-heavy Nasdaq Composite was down nearly 0.8%. Tesla stock has now fallen 16% since Nov. 22.

Now what

Tesla stock's sky-high valuation means that shares will generally be much more volatile than the overall market.

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