Back to top

Here's Why Tesla (TSLA) Stock Fell Today

Read MoreHide Full Article

Shares of Tesla (TSLA - Free Report) fell 3% in mid-morning trading on Monday after CEO Elon Musk said the company’s stock “is higher than we have the right to deserve.”

On Saturday, Musk spoke at the National Governors Association Summer Meeting in Rhode Island. He told Nevada Governor Brian Sandoval, “I’ve gone on the record several times that the stock price is higher than we have the right to deserve and that’s for sure true based on where we are today.”

According to Musk, shares of Tesla trade higher based on optimism about the company’s future. “Those expectations sometimes get out of control,” Musk said.

Musk’s statement also follows news from Minnesota that a driver blames his Tesla’s autopilot feature for a car accident. After engaging the autopilot feature, the driver’s Tesla accelerated and overturned in a marsh. He and four other adults in the car were slightly hurt.

The electric car company’s stock has been falling consistently this month after hitting an all-time high in late June. Since then, Tesla stock has fallen over 10% after the company missed delivery expectations, performed worse-than-expected on a vehicle safety test, and missed second-quarter shipment projections.

Tesla remains a Zacks Rank #3 (Hold). Our consensus estimates show that the company will have positive year-over-year sales growth for the current year. Tesla is expected to report its next quarterly earnings on August 2 after market close.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Tesla Inc. (TSLA) - free report >>


More from Zacks Stocks in the News

You May Like