Tesla stock whipsawed in early September
The last month has been a rough one for Tesla (TSLA) stock. In the last month, TSLA has fallen ~30.6% through September 7. Among its peers in the auto industry (XLY), General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) have lost about 8.8%, 8.0%, and 1.2%, respectively, during the same period.
After posting a 12.7% drop in the week ended September 7, Tesla stock showcased a sharp recovery today. Tesla was trading with 8.5% gains for the session at 4:00 PM EDT.
The Musk factor in play again
In our previous coverage, we’ve discussed how Tesla CEO Elon Musk drives the company’s stock price more than its fundamentals do. On September 7, a letter from Musk to Tesla’s employees was posted on the company’s official blog.
In the letter, Musk noted, “We are about to have the most amazing quarter in our history, building and delivering more than twice as many cars as we did last quarter.” He added, “Results are what matter” and asked employees to ignore the “fuss and noise in the media.”
Media “fuss and noise”
Last week, Musk was seen “briefly smoking marijuana on a live web show with comedian Joe Rogan.” Please read Tesla Stock Reacts to Elon Musk’s Latest ‘Joint’ Venture to learn more. Tesla also revealed in a September 4 SEC filing that Dave Morton, its chief accounting officer, resigned that day, effective immediately. Morton had joined the company on August 6.
August was an unsettled month for Tesla investors. On August 7, Musk’s tweet about “taking Tesla private” triggered a price rally in the stock. On August 24, he dropped the idea of taking Tesla private, calling the process of going private “more time-consuming and distracting than initially anticipated.”
Tesla stock was highly volatile in June and rose 20.4% after Musk promised investors that the company would meet its second-quarter Model 3 production targets. We can expect Tesla stock to remain volatile in September, as the company is expected to report its second-quarter vehicle production and deliveries figures in the first week of October.