Tesla Stock Falls by 10 Percent

The auto making giant has fallen on the stock by ten percent, mainly due to bearish ratings from leading investment firms

Tesla Motors has been experiencing some immense shaking up in the stock department following the launch of its Model X car, which has been deemed by the analysts as an ‘overly priced’ vehicle, even for the elite. The shares of the auto making company were seen to experience some massive volatility onm the index since the launch of the high end technology vehicle, and only in the previous five days of the weeks, the giant’s stock has managed to not maintain a stable position in the market and has fallen a colossal 10 percent, which has turned out to worry the investors a tad bit too much.

The analysts at Wall Street Journal have also been posting negative sentiments towards the Tesla stock, which has become one of the reasons of its downfall for the past few days. Before the week started, the share price was recorded at $250 but during the five days that it has been traded with from Monday to Friday, the hyper extensive activity that was followed by the giant’s shares on the stock index made the value of the shares to drop by a massive ten percent, making the share price reach $220, which is one of the fastest downfalls it hybrid car makers have experienced so far.

Tesla business has always managed to maintain a good position in the market, given the successful electric car making idea that it has been carrying forward with so much prosperity, but the analysts who have downgraded the share price are of the opinion that this downfall is majorly because of the price of the Model X car, it in their opinion the smart car makers are not offering that much but still asking for a very high price, which is going to make it difficult for the customers to want to buy the vehicle.

According to Tesla stock news, one more thing to be considered is that the Wall Street Analysts are not the only ones with the overly bearish analysis towards the giant’s business, as one analysts from Baird was also seen to downgrade the company by presenting it with a price target that was cut down from a previous $335 to $282. The cut down has been made due to the analyst’s belief of how the new luxury car is comparatively a complex vehicle which means that the company is going to take time to produce them in a huge number, which will eventually slow down the production.