Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Stock Fell Friday

By Daniel Sparks – Feb 28, 2020 at 1:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares of the electric-car maker have now fallen more than 28% over the past seven days.

What happened

Shares of Tesla (TSLA -0.30%) were hit hard on Friday, declining as much as 9.9%. As of 12:20 p.m. EST, however, the stock was down just 5%.

Friday's decline adds to a sharp pullback in the electric-car maker's shares over the past week. Shares are down 28.6% over the past seven days.

A white Model S driving in mountains

Model S. Image source: Tesla.

So what

Tesla's decline on Friday comes as the overall market continues to sell off amid coronavirus fears. At the time of this writing, the S&P 500 is down 2.4% on Friday and 12.9% over the last seven days.

Though Tesla stock seems to have fallen off a cliff recently, it's still impressively up more than 200% over the past six months. Investors in the automaker, therefore, may be taking profits and reassessing whether the stock's valuation was running too high.

Now what

Going into 2020, Tesla expected vehicle deliveries to rise from around 368,000 in 2019 to more than 500,000 this year. When the automaker reports vehicle deliveries for its first quarter in early April, investors should look to see if headwinds in China due to the coronavirus are making this target difficult to hit. 

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$282.09 (-0.30%) $0.85

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.