Tesla Stock Plunges as Top Executives Leave
Stock values for the Palo Alto, California based Tesla Motors took a nose dive after the official announcement of two executives would be leaving the company.
A couple of months before Tesla plans to launch its all electric Model S sedan, Ricardo Reyes, a spokesman for the company, announced the departure of two individuals who were involved in the development and design of the car. Peter Rawlinson, Tesla’s vice president and chief engineer, and Nick Sampson, supervisor of vehicle and chassis development are the two executives in question.
This announcement has caught the attention of anyone holding stocks in the company, and the result is a record %19 loss of value of the company’s stocks. Tesla received a $465 million U.S. loan to start production of the Model S in Fremont, California, which must have share holders worrying even more knowing that if the car doesn’t sell, bad times await. Some more dismal numbers from Tesla include a negative -110.95% loss in the net profit margin as well as losses in its operating margin which remained at -109.92%.
The Model S will be on sale later in the year, and the initial offering will carry a $49,900 price tag after rebates and incentives.
[Source: Galaxy Stocks]