Shares of Tesla (NASDAQ: TSLA) took a nosedive Monday after CEO Elon Musk came under fire, and some market forecasters see bigger losses yet, citing a corporate leader lately mired in controversy and lingering concerns about vehicle production.
Investors have been here before, with the volatile stock entering yet another correction during what’s proved a rocky year.
The most recent decline, a nearly 3% drop in Monday trading, was sparked by Musk’s flamboyant weekend on Twitter and reports of his political donations that rocked some of his base.
Musk, who has taken to Twitter in recent weeks to combat his critics, drew criticism this weekend after calling a diver involved in the rescue of a Thai soccer team a "pedo." The diver, Vern Unsworth, had criticized Musk’s effort to create a small submarine to rescue the soccer team members.
To be sure, the company is still very much a battleground name on Wall Street. Analysts and other market participants tend to be quite split on the stock’s future. On average, analysts give Tesla a hold rating; in other words, neither buy nor sell the shares. At least three firms, including Cowen, rate the stock a sell, and at least seven firms rate it a buy.
The fact that the name has traded around its 200-day moving average for the bulk of this year indicates to one expert range bound behavior, and prompts him to recommend investors look elsewhere.
Shares moved forward $3.87, or 1.3%, to $313.97
