What happened
Shares of Tesla (TSLA +0.43%) were slammed on Monday, falling as much as 14%. As of 11:42 a.m. EDT, the stock was down about 10%.
The electric-car maker's stock's decline came as the overall market sell-off of the last few weeks worsened. Growth stocks like Tesla were hit particularly hard on Monday.
Model X. Image source: Tesla.
So what
While further spread of the COVID-19 coronavirus might be one reason for more fear in the stock market on Monday, a primary catalyst for the market decline was likely Saudi Arabia's decision to launch an oil price war. Oil prices fell more than 20% after Saudi Arabia slashed prices and increased production.
Some investors might also argue that lower gas prices as a result of an oil price war could make transitioning to electric vehicles less compelling, potentially having a negative impact on Tesla.
Now what
Tesla stock's decline on Monday adds to a sharp pullback over the last few weeks. Shares have slid about 31% since Feb. 19. Notably, though, the stock is still up 180% over the last six months.
Investors have big expectations for the electric-car maker in 2020. In the company's fourth-quarter update, management guided for full-year vehicle deliveries to grow at a rate of 36% year over year or greater. In addition, Tesla said both solar and storage deployments should increase 50% year over year or greater during 2020.
