Tesla Motors stock plunges to 52-week low after fatal Model X crash
The shares of the Silicon Valley-based electric-car manufacturer Tesla Motors plunged to a 52-week low this week, with the freefall of the company’s stock continuing on Wednesday.
The alarming drop in the previously high-flying Tesla stock is largely a result of the last-week fatal crash involving a Model X, as well as questions being raised about the company’s recent move to increase the production of Model 3. Investors have been worried for the last few quarters about Tesla’s ability to deliver on its promise.
As the company faced production bottlenecks, CEO Elon Musk has mentioned that Tesla Motors will do everything to deliver Model X cars to clients who have booked the electric vehicle. While some investors have sold the stock during the current downturn, others are considering it as a buying opportunity. Tesla stock price will mainly depend on Model 3 deliveries and Musk has earlier indicated that he is closely working with his team to improve vehicle deliveries.
As compared to the high valuation which the Tesla stock achieved on September 18, 2017 when it hit a peak of $389.61 a share, the recent freefall of the company’s shares has led to a significant drop in its market capitalization, to the tune of approximately $20 billion.
With Tesla’s shares presently spanning a bull and bear territory and trading down more than 17% since the beginning of 2018, Morgan Stanley analyst Adam Jonas as well as some other Wall Street analysts are of the opinion that the recent slump in Tesla shares has unfolded a great opportunity for buying the shares.
In a Wednesday note to clients, Jonas said that Morgan Stanley believes that it is “looking at one of the buying opportunities that many investors have been waiting for,” and added that any further fall in Tesla shares would offer “an opportunity to build an Equal-weight position in the stock.”
Engineering research and consulting firm Munro & Associates has recently revealed that it has completed its teardown and analysis of Tesla’s Model 3 electric car.
In Luxembourg, two electric vehicles (EVs) manufactured by Tesla Motors will be used by the police for patrolling purposes. The two Tesla cars which are being used a police patrol cars are Model S sedans.
In a recent report, Fitch Ratings has described German engineering giant Bosch’s new diesel exhaust system as a technology ‘breakthrough’ which may slow automakers’ switch to electric vehicles (EVs) if widely adopted.
Auto Express magazine has disclosed in a recent report that British automobile brand MINI is designing its second fully electric vehicle (EV), which is being developed exclusively for the Chinese market.
According to LA Downtown News, the Los Angeles Department of Transport has launched ‘BlueLA’ all-electric car sharing service.
In a recent announcement, petroleum company BP has revealed that a new energy storage system for its Titan 1 wind energy power plant in South Dakota, US, will be built and supplied by Tesla.