Tesla Shares Tumble Ahead of Quarterly Results

Tesla Shares Tumble Ahead of Quarterly Results

Tesla is getting ready to announce its quarterly results and investors aren’t optimistic.

The American electric car maker will announce its report on Wednesday and analysts expect quarterly earnings of 8 cents per share on revenue of $1.79 billion. Many investors aren’t even waiting to see how the company does against expectations, with shares dropping to slightly more than a two-year low, closing at $147.99 on Monday after a nine-percent drop.

Compared to the company’s stock offering last August, Tesla shares are now down 33 percent.

SEE ALSO: Some Tesla Model 3 Details Will be Revealed in March

Uncertainty surrounding Tesla is focused on short-term concerns and a more long-term threat from established automakers from Detroit, Germany and Japan. Investors are keeping a close eye to see how quickly Tesla can ramp up production of its new Model X crossover.

Last month, the company delivered a total of 17,400 vehicles in the fourth quarter with only 208 of them being the Model X. Some analysts are questioning whether Tesla will still hit its goal of launching the affordable Model 3 by 2017.

[Source: Reuters]

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  • Rickers

    This bubble should have burst long ago.

  • Mike

    Tesla sucks.