Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Motors, Inc. Stock Was Slammed Today

By Daniel Sparks – Feb 8, 2016 at 3:53PM

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

What investors need to know about the decline in Tesla's stock price on Monday.

What: Electric-car maker Tesla Motors' (TSLA -3.46%) stock fell as much as 10.2% today following bearish analyst chatter and ahead of the company's earnings release on Wednesday.

So what: Going into Tesla's fourth-quarter report, which is scheduled for this Wednesday after market close, investors are skittish -- possibly in anticipation of potentially worse-than-expected guidance as the electric car-maker appears to be struggling to ramp up production of its September-launched Model X SUV.

The day's sell-off follows several analyst downgrades last week for the stock. Morgan Stanley analyst Adam Jonas, who is bullish on the stock, downgraded his price target for Tesla shares from $450 to $333 on concerns about Tesla's expectations to follow through with the volume growth in vehicle deliveries he was expecting. Pacific Crest analysts said that orders for its new Model X are "lagging expectations" based on their "checks with U.S. sales centers."

Now what: There's no new information for investors that would make them adjust their thesis on the company. Neither analyst report is based on data directly from Tesla that can be confirmed. All investors can do at this point is wait until Wednesday to get an update from the management on Tesla's most recent quarter and on the company's expectations for the current quarter and the rest of the year.

Daniel Sparks owns shares of Tesla Motors. The Motley Fool owns shares of and recommends Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 Stock Quote
Tesla
TSLA
$240.81 (-3.46%) $-8.63

*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
342%
 
S&P 500 Returns
110%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

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.