What happened
At 2:05 p.m. ET today, Tesla (TSLA 1.85%) shares were trading near the lows of the day, down 7.1%. The company is ready to update investors over the next several days, but that isn't likely the reason for the big drop today.
So what
Over the upcoming weekend, Tesla will provide its third-quarter delivery data, if it sticks to its typical timeframe for those numbers. One analyst just cut his delivery estimate as well as his stock price target, which may be contributing to today's move. But the bulk of the drop today can be attributed to the market in general, as the tech-heavy Nasdaq Composite index was trading down by more than 3%.
Piper Sandler analyst Alex Potter put out a note yesterday in which he lowered his estimated third-quarter deliveries from 380,000 to 354,000. He also cut the firm's price target to $340 per share, reports Barron's. Potter still thinks the stock is a buy, however, as the new price target implies a gain of more than 18% from yesterday's closing price.
Now what
Tesla is also set to hold its second annual "AI Day" tomorrow. That should provide investors with updates on topics ranging from Tesla's humanoid robot to its quest for a full self-driving vehicle.
Until investors hear more from the company regarding both deliveries and its artificial intelligence segment, the stock is likely to trade with other higher risk assets. Today, that's to the downside.
