Story of Tesla Motors Inc (TSLA)’s Suicide At the Hands of Elon Musk: Phil LeBeau

Tesla Motors Inc (NASDAQ:TSLA) touched the $286 mark in September and now the stock is down to $224.59. In percentage terms that is about a 21.7% drops. Sky falls in stock market probably do not get any crazier than this consider that we are still no signs that we are in a financial crises and Tesla Motors Inc (NASDAQ:TSLA) didn’t release any earnings report either. CNBC‘s Phil LeBeau highlighted three reasons for Tesla’s hard landing.

 The first and foremost reason is the publicity stunt gone wrong by Tesla Motors Inc (NASDAQ:TSLA)’s CEO, Elon Musk. The combination of his cryptic tweet and a visionary personality had the investors in a buying frenzy. In short, people wanted to squeeze out every drop of milk from Tesla Motors Inc (NASDAQ:TSLA)’s cow. Surprise surprise, the cow is no milking mood before the release of its Model 3 in 2017.

“[…] First of all its the post D Day slump. Last Thursday the hype that was built on this event in Los Angeles was ridiculous. There were people saying it’s the new model, it’s the greatest model in the world. Well, no. It’s advancements for the model S, important advancements, one that are going to help the vehicle but it is not the greatest delivery of new technology […],” said LeBeau.

Secondly,  sales of Tesla Motors Inc (NASDAQ:TSLA)’s Model S still haven’t changed, according to LeBeau. The company has also not revised its sales estimates either.  The company is scheduled to release its quarterly earnings report on 3rd November and it will be interesting to see what impact that has on Tesla Motors Inc (NASDAQ:TSLA)’s stock price.

Lastly, Tesla Motors Inc (NASDAQ:TSLA) is a momentum stocks and they all seem to be hard hit recently during the current financial environment, where a considerable about of macroeconomic uncertainty prevails. It is a highly volatile market where the 200 day moving average, an important indicator for analysts, for many indices is making new lows.

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