Why Tesla Stock Skidded to an 8% Loss on Wednesday
Has there been any high-profile stock more volatile than Tesla (NASDAQ: TSLA) lately?
Following a burst of investor optimism on the back of the company's latest delivery figures, the bears took over on Wednesday. A disquieting media report was responsible for the rapid mood change; this drove Tesla's share price down by more than 8% across the Hump Day trading session.
A major product introduction apparently postponed
Before market open, Bloomberg published an article stating that Tesla will postpone the unveiling of its highly anticipated robotaxi. Citing unnamed "people familiar with the decision," this is being done so the robotaxi team can rework certain elements of the vehicle and build more prototypes.
Tesla CEO Elon Musk had set the date of the robotaxi introduction for Thursday, Aug. 8. According to Bloomberg's sources, that will be pushed back by around two months.
Previously, investors were understandably excited about the robotaxi. Such a craft can open gushing new revenue streams for Tesla if managed effectively. Any delay is thus cause for concern.
The electric vehicle (EV) maker has not yet officially commented on the Bloomberg report.
Second-quarter earnings coming up soon
While the robotaxi news certainly affected sentiment on Tesla stock, the major event to watch this month will be the company's second-quarter earnings. These are slated to be released on Tuesday, July 23 and will provide a clearer picture as to whether the company is showing true improvement in its operations and fundamentals โ or at least not showing significant erosion.
On average, analysts tracking Tesla stock are expecting a slight (2%) year-over-year decline in revenue to just over $24 billion. The bottom-line slump should be more dramatic, as those prognosticators are modeling a collective $0.61 per share for profitability. The year-ago figure was $0.91.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Why Tesla Stock Skidded to an 8% Loss on Wednesday was originally published by The Motley Fool