Thursday, June 19, 2014

Why Are Investors Getting Nervous About Tesla Motors, Inc. Stock Prices?

Tesla Motors, Inc. is a US-based company that sells, manufactures and designs electric cars and powertrain components for electric vehicles. The company, which was established in 2003, gained widespread recognition with it introduced the Tesla Roadster to the world. The Tesla Motors Inc. stock symbol is TSLA. Within the last week, TSLA stock news showed that the company is currently beating the overall industry market. But, as of today, the TSLA stock price is dropping. This can probably be attributed to investors being nervous about the earnings report. TSLA will be releasing this report after close of
market Wednesday.

Analysts are anxiously awaiting updated information about potential choices for gigafactory locations in multiple states. There are also expected updates about partnerships, and Model X, Tesla’s soon to be released next automobile. Other expectations include this year’s targets for Model S production and US sales inclines.

According to Elon Musk, Tesla Motors, Inc. CEO, they are planning ahead for last-minute problems. Because of this, the company will be moving forward with efforts to open gigafactories in at least two different states. The selection process involves a competition to win the world’s largest plant for battery production. Winning states will take part in employing 6,500 people. This should add about $5 billion to these various local economies.

In the past week, April 28, 2014 to May 5, 2014, TSLA stock prices increased from 198.51 to 216.51. This represents a 9.12 percent increase for that week. However, during that same week, S&P increased by 0.81 percent, Nasdaq only increased 1.56 percent and the Dow only increased by 0.50 percent. TSLA stock price today, as of 2:05 PM, was down by 3.57 percent.

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