Tesla Motors stock plunges to 52-week low after fatal Model X crash
The shares of the Silicon Valley-based electric-car manufacturer Tesla Motors plunged to a 52-week low this week, with the freefall of the company’s stock continuing on Wednesday.
The alarming drop in the previously high-flying Tesla stock is largely a result of the last-week fatal crash involving a Model X, as well as questions being raised about the company’s recent move to increase the production of Model 3. Investors have been worried for the last few quarters about Tesla’s ability to deliver on its promise.
As the company faced production bottlenecks, CEO Elon Musk has mentioned that Tesla Motors will do everything to deliver Model X cars to clients who have booked the electric vehicle. While some investors have sold the stock during the current downturn, others are considering it as a buying opportunity. Tesla stock price will mainly depend on Model 3 deliveries and Musk has earlier indicated that he is closely working with his team to improve vehicle deliveries.
As compared to the high valuation which the Tesla stock achieved on September 18, 2017 when it hit a peak of $389.61 a share, the recent freefall of the company’s shares has led to a significant drop in its market capitalization, to the tune of approximately $20 billion.
With Tesla’s shares presently spanning a bull and bear territory and trading down more than 17% since the beginning of 2018, Morgan Stanley analyst Adam Jonas as well as some other Wall Street analysts are of the opinion that the recent slump in Tesla shares has unfolded a great opportunity for buying the shares.
In a Wednesday note to clients, Jonas said that Morgan Stanley believes that it is “looking at one of the buying opportunities that many investors have been waiting for,” and added that any further fall in Tesla shares would offer “an opportunity to build an Equal-weight position in the stock.”
German automaker BMW has recently revealed that the total number of company’s i3 electric cars sold in the UK has touched ‘10,000 units’ milestone.
According to an Automotive News report, German automaker BMW plans to discontinue its i3 all-electric compact car and i8 plug-in hybrid sports car ahead of introducing its next-generation electric vehicles (EVs).
According to a Reuters report, Germany’s new Finance Minister Olaf Scholz said in a recent interview with the Funke Mediengruppe newspaper chain that all possible measures should be taken by the country to avoid the imposition of ban on diesel car
According to a recently published Reuters report, German automaker BMW -- which sold more than 100,000 battery-electric and plug-in hybrid cars in 2017 -- does not plan to commence mass production of electric cars before 2020.
German automaker BMW has recently announced that it will be presenting a series of new all-electric vehicles this year. The announcement was made by BMW’s CEO Harald Krüger at the company’s recently-held Annual Accounts Press Conference 2018.
Electric vehicle manufacturer Tesla Motors has issued a voluntary recall of 123,000 units of its Model S electric cars, owing to a defect in a power steering bolt.