After a big drop, Tesla suddenly looks cheap(er)

Posted: 7 December 2021 10:32 am
News
ChargingOfAnElectricCar_GettyImages_1800x1000

Elon Musk’s stock selloff and recent investigations into Tesla Autopilot have dragged down its share price by 20% in about a month.

Tesla stock entered a bear market Monday as shares of the automotive and energy company began the trading session down more than 20% from their recent highs. Tesla hit an all-time high of $1,243.49 per share in early November but has been trading at a discount for the last month.
Tesla stock slumped days after achieving these new highs when Elon Musk announced plans to sell 10% of his stake in the company. Since then, Musk has sold more than 10 million shares.
Shares of Tesla have regained some ground since, despite a New York Times article detailing possible safety defects in Tesla Autopilot, the automaker’s self-driving feature. The National Highway Traffic Safety Administration (NHTSA) launched an investigation in late-August 2021 following 12 crashes in which Teslas using Autopilot crashed into first responder vehicles.
Reuters also reported that the Securities and Exchange Commission (SEC) opened an investigation into Tesla over whistleblower claims on solar panel defects, citing a letter from the agency. The complaints allege that the company failed to properly notify its shareholders and the public of fire risks associated with solar panel system defects. Shares of Tesla hit a session high of $1,021.64 Monday before settling back down. The stock closed at $1,009.01, up 0.75% for the day.

Is Tesla stock a buy?

Analysts are mixed on the stock, and the consensus is currently a “Hold” with an average 12-month price target of $839.75. Tesla’s price-to-earnings ratio is also sky-high compared to other car manufacturers. But such doubts have never kept buyers away, leading to gains of 57% in the past year and 2,500% in five years.
If you’re eager to add shares, they’re $200 less each than a month ago. But If Musk continues offloading shares, you might want to consider holding off as the price could fall a bit more.

Information on this page is for educational purposes only. Finder is not an advisor or brokerage service, and we don't recommend investors to trade specific stocks or other investments.

Finder is not a client of any featured partner. We may be paid a fee for referring prospective clients to a partner, though it is not a recommendation to invest in any one partner.

Ask an Expert

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site