After having a good start to the year, Tesla shares have taken a plunge again. Actually, Tesla stock has been diving for something it sees on the ground ever since the company released its quarterly report last week. However, stocks are still up substantially as compared to December.
After the company’s quarterly report sparked fears that Model 3 production cold be delayed this year as well, Goldman Sachs analyst David Tamberrino downgraded Tesla to “sell” from “neutral”. His decision was also influenced by the rumors that the company will sell further stock to raise $1.7 billion.
Following the “sell” rating, the value of Tesla shares took a 5 percent plunge on Monday and dropped down to $244.52 in morning trade. However, it rose again and stood at $246 at the time of writing this article.
Meanwhile, the company is still doing pretty well. Thanks to the surge it received late last year and the early part of this year, Tesla is still up almost 14 percent in 2017 — despite dropping over 10 percent since its quarterly report from last week. Tesla stock reached an all time high earlier this month as Model 3 opened up for online ordering in Dubai. However, the company’s quarterly report has proved to be quite the party-spoiler.
Meanwhile, part of the debate that keeps investors and analysts jostling and Tesla stock oscillating between high and low points is the fact whether the company — which has already brought a paradigm shift to how we consider electric cars — will succeed in its mission of becoming the first company to have electricity at its center, or will it be sided by automobile manufacturers like GM, Daimler etc. that appear to have suddenly discovered their love and affection for electric cars of late.
Meanwhile, a lot hangs upon whether or not the company is able to get its Model 3 production on track for this year. With the Gigafactory churning out cells, the company must no come up with enough cars as well.