Tesla (TSLA) is trading on a negative note once again in March after its minor recovery in February. The stock ended February with 4.2% gains after losing 7.7% in January. Ford Motor (F), Fiat Chrysler Automobiles (FCAU), Toyota (TM), and Honda (HMC) fell 0.3%, 14.4%, 1.7%, and 6.0%, respectively, last month. In contrast, General Motors (GM) and Chinese electric carmaker NIO (NIO) rose 1.2% and 21.4%, respectively, in February.
As of March 7, Tesla has lost 13.5% month-to-date.
Key recent developments
As usual, Tesla and its CEO, Elon Musk, remained in the news last month. While the company launched its lower-priced version of the Model 3, Musk seemed to be in trouble with the SEC again for his recent tweets.
On February 25, the SEC “asked a judge to hold” Musk “in contempt for violating a settlement” from 2018, Bloomberg reported. This issue related to Musk’s February 19 tweets, where he first said Tesla “will make around 500k in 2019,” whereas Tesla, in its fourth-quarter earnings (IWF) report, guided to deliver 360,000–400,000 vehicles in 2019. A few hours after his first tweet, Musk, in another tweet, said, “Deliveries for year still estimated to be about 400k.”
See Could SEC Ask Elon Musk to Step Down as Tesla’s CEO? to learn more.
According to Reuters, Musk needs to explain to the court “why he should not be held in contempt” by March 11.
On February 28, Tesla launched its lower-priced Model 3 with a price tag of $35,000 for a 220-mile driving range per charge. Also, the company is expected to unveil its lower-priced SUV model, the Model Y, next week. We’ll discuss this news in detail in the next part of this series.