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UPDATE: Tesla’s Stock Price Dives
Tesla Inc.’s stock price, which began sliding from $357 in late February, dropped 19% to $266 per share in March, its worst month in seven years.
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Tesla Inc.’s stock price, which began sliding from $357 in late February, dropped 19% to $266 per share in March, its worst month in seven years.
Shares continued to sag today. Prices dropped below $246 this morning before rallying in mid-afternoon. Shares closed at $252.48, down 5% for the day.
Investors are increasingly worried about the company’s inability to meet its manufacturing targets for the Model 3 electric sedan. Tesla is counting on the model, its first mass-produced car, to establish sustainable profitability.
Last week Moody’s Investors Service dropped its credit rate for Tesla one notch deeper into “junk” territory. The firm cites financial strains caused by the Model 3’s tardy production results.
Investors are concerned about last week’s fatal crash of a Tesla Model X, the company’s second involving a car operating with in semi-autonomous Autopilot mode. Federal safety authorities chastised the company for revealing details about the crash in the midst of an investigation.
Shareholders also were not amused by CEO Elon Musk’s sophomoric April Fool’s Day tweets that joke about the company going “totally bankrupt—so bankrupt, you can’t believe it.”
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