What happened
Shares of electric-car company Tesla (NASDAQ:TSLA) took a big hit on Thursday. As of 12:20 p.m. EST, the stock was down 8.2%.
While the stock's pullback on Thursday is undoubtedly influenced by a continued market sell-off amid coronavirus fears, there may be some company-specific news weighing on the stock as well.
[Alert: New “Tesla Killer” is The Real Deal and Underlying Stock Only Costs a Few Bucks]
So what
Registrations of new Tesla vehicles in China during January fell nearly 50% compared to registrations in December of 2019, according to China Automotive Information Net. Tesla had delayed some deliveries of its new China-made Model 3 earlier this year, citing an extended closure of its new factory in China. The factory faced a government-required shutdown due to the coronavirus but reopened in early February.
Meanwhile, some Tesla investors may have been skittish after Morgan Stanley analyst Adam Jonas expressed concerns about the possibility of Tesla losing share of the battery electric vehicle market to legacy automakers in the coming years. Jonas kept an underweight rating on the stock and a $500 12-month price target.
[Check This Out: New “Tesla Killer” Charges in Minutes Instead of Hours, Silences Doubters]
Now what
While Tesla stock has fallen sharply over the last week, shares are still up 230% over the past six months. After such an extraordinary rise, investors should brace for more volatility ahead — especially in light of global coronavirus fears.
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