Tesla Stock Drops On Production Worries, Crash Test Woes

Bernstein downgraded Tesla's stock to underperform. In fact, a court in Munich, Germany, this month ruled Tesla misleads customers into believing the company's Autopilot driver-assist technology is more capable than in fact it is. The court banned Tesla from including full potential for self autonomous driving” and Autopilot inclusive” in its German advertising.

The company's net profit of $104 million for the second quarter marks the first time in its 17 years it has achieved four profitable quarters in a row. The recent rally is a big boon for Mr. Musk, who has gained more than $15 billion from his Tesla stock holdings since the start of the year.

But, of course, it is the story that drives ‘investors' to buy the shares, not the financials. The company will release its second-quarter earnings on August 15. A lot of negative news has hit Tesla stock this month. His 2017 assurance to Wall Street analysts that they should have "zero doubt" Tesla would hit a production level of 10,000 cars a week by the end of 2018.

Latrilife, who said he's Tesla Analysis got "six figures" invested in short bets that Tesla's stock price will plummet, hired a helicopter to photograph the Hawthorne garage's top level, the view of which was inaccessible from the public sidewalk. San Francisco: Tesla shares stumbled after its eccentric CEO Elon Musk tweeted on Friday that the company's stock price was too high”, triggering a free fall in stock prices.

The tech stock guru downgraded the electric carmaker's stock from market perform to underperform. What Tesla is, relatively speaking, is heavily shorted: Of its 173 million shares, about 17 per cent are held by short-sellers. Tesla has demonstrated that it can build cars while generating cash and with best-in-class profit margins,” said Pierre Ferragu, an analyst at New Street Research.

When the bubble pops (and Tesla stock is in a bubble), there will be tremendous opportunity to capture gains of 100%, 500%, even 1,000% or more on the downside with put options. I am a huge Elon Musk fan and believe Tesla will likely become the next Apple or Amazon.

Meanwhile, according to Nasdaq, short sellers bought another 10 million shares. NTSB officials said it remained "unclear if automated control system was active at time of crash," a reference to Tesla's Autopilot system. In July 2019, open short interest was more than 40 million shares, but short interest now stands at about 15 million shares.