AUTO - Tesla Stock Plummeted After Musk Warned of a Recession in China and Europe
Tesla Stock ( NASDAQ:TSLA )
After CEO Elon Musk remarked Wednesday that it was “a bit difficult” for the electric car manufacturer to attract demand in the face of a faltering global economy, Tesla stock dropped on Thursday.
Wedbush Securities, a bull on Tesla stock, was the most draconian, cutting its $300 objective by $60, making it the sixth firm to do so. On Wednesday, Tesla ( NASDAQ:TSLA ) reported lower-than-expected earnings for the company’s most recent fiscal quarter.
On Wednesday, Musk told Tesla stock investors on a conference call that “a recession of sorts” in China and Europe had made demand “a bit tougher than it otherwise would be.” Despite missing its yearly delivery goal owing to restricted transportation capacity, Tesla’s CEO stated the electric vehicle manufacturer had “great demand” for the current quarter.
During a conference call in July, he claimed one thing about demand. He then said something completely different when an analyst challenges: the firm does not have a demand issue but a production problem.
In a June email from Reuters, Musk explained why Tesla needed to lay off nearly 10% of its workforce: he had a “very awful feeling” about the economy. Later he clarified that only salaried employees would be affected by the cut.
So far this year, Tesla stock shareholders have lost almost a third of their investment. After dropping as much as 9% to a 16-month low early in the day, Tesla stock was trading down 6.5% at $207.56 by Thursday afternoon.
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