Tesla Stock Boomed After the SEC Deal. Then Elon Musk Tweeted. Now the Company Is Worth $10 Billion Less
Tesla Inc. just can’t seem to catch a break.
If the rout sparked by an SEC investigation into CEO Elon Musk’s tweets on taking the carmaker private wasn’t enough, a subsequent tweet storm mocking the agency and an unflattering comparison to Lehman Brothers Holdings Inc. slewed off even more value. Shares extended losses for a fifth straight session Monday, falling 4.3% to the lowest in more than 18 months.
The stock rebounded in after-hours trading, recovering about 1%, after Macquarie initiated coverage of Tesla (TSLA) with an outperform rating.
Investors continue to punish Tesla even as its Model 3 is becoming one of the best-selling sedans in America. The company managed to deliver on its third-quarter projections for the electric car, leading JPMorgan to boost its estimates.
The stock closed at its lowest level since March 2017 on Monday, shaving more than $10 billion off its market capitalization in one week.
“The auto industry is on the precipice of a multi-decade transformation” driven by disruptive innovation and technology, which Tesla is “uniquely positioned” to lead, Macquarie analyst Maynard Um said in a note.