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Tesla Stock Price Down 45% This Year
Shares in Tesla Inc. closed last Friday below $191, down 45% from their price in mid-January.
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Shares in Tesla Inc. closed last Friday at less than $191, down 45% from their price in mid-January.
The slump reflects skepticism among investors that the electric car company can meet its own sales targets. Doing so became considerably more difficult in January, when hefty federal tax credits for its customers began to phase out. The end of the $7,500 credits next year will amount to an equal price hike for buyers.
Now, some analysts suggest, mercurial CEO Elon Musk would be wise to shelve plans for such distracting projects as Tesla car insurance and the debut of an autonomous-taxi service. To restore investor confidence, they say, Tesla should focus on one goal: proving its financial viability.
Doing so will mean streamlining Tesla’s business model, reducing operating costs and dramatically boosting global sales of the company’s $39,900 Model 3 electric sedan.
Observers note that Tesla’s chronic inability to achieve its own performance goals has frittered away the company’s three-year lead over traditional car companies. Now those rivals are beginning to roll out their own electric models, many of which will compete directly with Tesla’s vehicles.
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