Tesla has taken the automobile world by storm with its innovative approach to electric cars and lithium-ion battery energy storage. They’ve also shown success with Solarcity, a platform for residential solar panels. In April, Tesla overtook General Motors to become the U.S. carmaker with the largest market capitalization, yet in this month’s stock report, they’ve experienced their largest percentage decline in more than a year with shares falling 7.2% to $327.09.
Speaking on the matter, Tesla claimed the company had a “severe shortfall” of new battery packs that restricted their vehicle manufacturing and afterward informed everyone that the “second-half deliveries of the Model S sedan and Model X sports utility vehicle should exceed those of the first half.” There have been skeptics of the Silicon-Valley based company and the correlation of the stock to actual value. Some figure that the high-priced shares do not represent the company’s actual worth and with the decline in its stock value, the estimation of its worth has truly been put into question.
Even with the recent downfall in percentage, Tesla is still experiencing a decent year in terms of numbers. According to Reuters, “[Tesla’s] stock remained about 7 percent above the median price target of $309.50… Less than 20 S&P 500 Index constituents can top that.” Their impressive numbers still show that even with a bump in the road, they’re still considered one of the dominant engineers for the world of electric motor vehicles, and the world of alternate, renewable energy.
Tesla will most likely bounce back from this small deficit, but it will be quite troubling for the company if stock hits take a long-lasting effect on its productivity. With an immense amount of potential and influence of their work, one can only wish for the best.
Mohammad Sultani for TechFunnel.com