TESLA Stocks Dives down as Stock Market Fall
The electronic car company ‘TESLA’ stocks hit deep bottom just this Monday, falling twice more than Dow Jones and S&P 500, and analyst are positive that it may not bounce back up anytime soon.
February 24, 2020 is the saddest day for traders as stock market falls smacked down real hard, but it hits harder for Tesla stock. Due to fear mongering CoVid-19 virus (Coronavirus) and common market bearishness, most investors sell-off their shares in their stock holdings – selling Tesla Stocks at a loss.
But not like most stocks that is falling down because of the above mentioned reason, Tesla’s stock drop has been predicted by analysts. They’ve been warning investors that its price is expected for a big correction, making it look like an early bubble burst.
According to ETH Zurich’s FCO ‘Financial Crisis Observatory,’ Tesla – “is a typical Dotcom-like bubble and very dangerous for short-sellers,” stating with finality, “A technical correction is inevitable.”
In most cases investors may panic with Dow Jones 1,031.61 drop but their 3.56% sell-off and so with S&P’s 3% is nothing against Tesla’s 7.8%.
Concluding ‘NASDAQ: TSLA’ as the most affected in the stock market fall down last Monday, it will be hard for the company to crawl back on top; one reason is the outbreak has restrained most of their plans on their China Expansion and so with their Shanghai factory. Showing a ‘clear-headwind’ for the company.
Garrett Nelson an Equity Analyst at CFRA said TESLA’s dependency on its new China Factory influence the fall more than many other auto maker.
He said, “The fact is that Tesla has much greater asset concentration risk than other, more diversified competitors.”
It may seem that TSLA is not so sought after like the time of IPO but to Tom and David Gardner, Motley Fool co-founders, TESLA is still one of their top 10 stock pick.
Companies experience low at times and it’s inevitable, TESLA is not an exception, but giving it a chance, the electric-car company may go further more like technology grows as time passed.
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