Tesla stock trips ‘circuit breaker’ after sudden share price drop [w/video]

Filed under: EV/Plug-in, Tesla Motors, USA

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Despite beating most analysts estimates in yesterday’s upbeat third quarter financial disclosure, Tesla Motors’ (TSLA) share price has taken a significant tumble. Down about 10 percent overnight, the company continued to be devalued as the day wore on, at one point hitting a low of $146.84.

The fall was so furious that it triggered (ironically) a NASDAQ “circuit breaker,” temporarily restricting short-sale transactions. The price seems to have now stabilized and is, as of this writing, down about 14.67 percent from the opening, trading at $150.88.

Reasons given by market experts for the drop are varied, with some worried about battery supply issues slowing the California automaker’s output, others citing the drop in revenue from ZEV credits and increased R&D spending for the Model X next year hurting future earnings.

Of course, many have said that the stock was somewhat overvalued after its red-hot 400 percent rise over the past year. Tesla CEO Elon Musk recently made the statement that the price was higher than the company deserves, though he did add that it will eventually surpass its current valuation.

Scroll down for video of an interesting discussion of the stock from Fox Business. If you feel like playing market analyst, let us know what your TSLA expectations are in the wake of this most recent “correction” in the comments below.

Continue reading Tesla stock trips ‘circuit breaker’ after sudden share price drop [w/video]

Tesla stock trips ‘circuit breaker’ after sudden share price drop [w/video] originally appeared on Autoblog Green on Wed, 06 Nov 2013 17:41:00 EST. Please see our terms for use of feeds.


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