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Tesla Stock Slumps Over 5% to Hit Lowest Price in Two Years

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Earlier this week, Tesla posted a worse-than-expected loss of $702 million for the March quarter and today, the company’s stock fell over 5% in a single day to its lowest price since January 2017, Reuters reports. With CEO Elon Musk failing to win over investors, Tesla’s stock has fallen almost 14.1% during the week.

Tesla

According to options analytics firm Trade Alert, Tesla contracts changed hands at twice the usual pace in the options market, with the trading volume set to hit a seven-month high of 712,000 contracts by the end of the session.

The company’s $1.8 billion junk bond sank half a cent to yield 8.42%, more than 3 percentage points above the bond’s coupon rate of 5.3%. In 2019, Tesla’s stock has already fallen 29% with the electric car maker’s market capitalization declining to $41 billion from $63 billion in mid-December:


Following Tesla’s quarterly report, 12 analysts recommend selling the stock, while 11 recommend buying and eight are neutral. The median analyst price target is $275, up 17% from the stock’s current price. Berenberg analyst Alexander Haissl has the most optimistic price target, at $500, while Cowen and Company’s Jeffrey Osborne has the lowest, at $160, according to Refinitiv.

Analysts now expect Tesla’s revenue to expand 19% in 2019, compared with 83% growth in 2018 and 68% growth in 2017.

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