Shares of electric-car company Tesla (NASDAQ:TSLA) were slammed on Monday. The stock fell as much as 19.1%. As of 1:27 p.m. EDT, however, the stock was down about 15%.
The stock's sharp decline is likely due to the market's overall sell-off on Monday. Growth stocks like Tesla were hit particularly hard. But a lowered price target for the stock by a Wall Street analyst likely also played a role in the stock's decline.
RBC Capital Markets analyst Joseph Spak cut his 12-month price target for Tesla stock from $530 to $380 on Monday, citing a challenging environment for luxury autos amid the coronavirus panic. He said he now expects Tesla to deliver 364,600 vehicles in 2020 -- well below management's guidance for more than 500,000.
Meanwhile, the S&P 500 is down more than 9% at the time of this writing, reflecting the market's continued panic about the economic implications of the coronavirus impact in the U.S. and other countries around the world.
Investors will get their first update on how Tesla's deliveries are faring in 2020 when the automaker reports first-quarter deliveries. The company typically reports deliveries one to three days after every calendar quarter ends.