Tesla Motors Inc (NASDAQ:TSLA) took an unbridled beating yesterday, shedding $25.34, more than 9% of its value, and around $3 billion of market cap. As Dominic Chu reported on CNBC yesterday, the crushing was delivered courtesy a Morgan Stanley (NYSE:MS) report.
“So let’s talk about the movers today, we’re gonna start with Tesla, getting crushed after Morgan Stanley released a report echoing what CEO Elon Musk said last week: that maybe Tesla’s stock price had gotten maybe just a bit ahead of itself. Tesla shares down near session lows, down about 9%,” Chu said.
The report cited several concerns to back up their agreement with Musk (though Musk might not agree on these particular points). They believe infrastructure in China is lacking to meet the demand for the Model S and Model X in that country, and that it could be years before Tesla Motors Inc (NASDAQ:TSLA) can meet the demand. They expressed caution over the Gigafactory, fears over the future arrival of autonomous vehicles, and angst at the electric vehicle market as a whole, along with doubts that it would ever succeed at achieving mass market penetration.
While the Morgan Stanley (NYSE:MS) report undoubtedly delivered the knockout blow to Tesla Motors Inc (NASDAQ:TSLA)’s stock yesterday, another early morning piece from Morningstar, Inc. (NASDAQ:MORN) analyst David Whiston perhaps softened it up just a bit with a few body shots of its own. That piece raised concerns over the broader EV market, the viability of the Model 3 as having mass market appeal at its existing price point of $35,000, and the potential for value destruction in the wake of continually needed investments by Tesla Motors Inc (NASDAQ:TSLA) in research and development to stay competitive.
Tesla Motors Inc (NASDAQ:TSLA) enters the day at its lowest point in nearly a month, and is now down 3.11% over the previous month.
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