Tesla shares fell 40% in a week (and then sharply won back losses)

In February, the upward trend in the value of Tesla shares, observed since the end of last year, changed to the opposite. Since then, shares of the automobile company Elon Musk continue to fall in price. Over the past seven days, Tesla shares have fallen by as much as 40%, writes Teslarati. The rollback is taking place against the backdrop of fresh Wall Street forecasts on the short-term and long-term prospects of the manufacturer.

This week, Argus Research analyst Bill Celesky changed Tesla’s stock rating from Buy to Hold. He explained that car deliveries are likely to decline due to the ongoing coronavirus pandemic and quarantine shutdown of Tesla’s production facilities. Recall that last week Tesla actually closed the main plant in the United States, following the order of local authorities on a three-week quarantine due to coronavirus.

In fairness, the Tesla Gigafactory 3 plant in Shanghai, where the younger Model 3 sedans are produced, works. Moreover, to date, Tesla has reached the production volume of 3 thousand Model 3 per week (the design capacity of the Phase 1 line is 150 thousand Model 3 per year) and is already equipping the Phase 2 line for the assembly of Model Y (after its introduction, the capacity of the enterprise will increase up to 250 thousand electric cars).

That is, Tesla shares, as before, are volatile, like bitcoin. When the stock market felt the effects of the coronavirus pandemic, the shares of the electric car maker plummeted, reaching $351 last week. But subsequently, they won back losses just as quickly, increasing by 47% over the past seven days. At the time of writing, at the close of the NASDAQ exchange on March 26, the stock price was $539,25 apiece.

At the same time, it is clear that coronavirus is currently preventing Tesla’s business, like all other companies, from growing. And while unfortunately the situation with the epidemic in the USA does not give reasons for optimism.

Author: Flyn Braun
Graduated from Cambridge University. Previously, he worked in various diferent news media. Currently, it is a columnist of the us news section in the Free News editors.
Function: Editor
E-mail: Braun.freenews@gmail.com