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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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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This bubble should have burst long ago.
Tesla sucks.