Tesla stock can’t go up forever, and after reports of recalls and Hertz-deal uncertainties in the headlines, Tesla stock is finally falling.
Tesla stock has been on a massive tear, gaining 70% over the last three months. Its shares have been buoyed by signs that the company really has won the EV race as it signed a deal with Hertz (HTZ) for 100,000 electric vehicles and companies like Ford and General Motors announced massive spending plans to try to close the gap.
No surprise, then, that the stock would react badly to the headlines. First, Musk himself tweeted that Tesla had yet to sign a contract with Hertz. Then came the announcement that the company would be recalling 11,700 vehicles.
If investors needed an excuse to take some profits, this was it. Tesla stock has dropped 5.1% to $1,147.30 in premarket trading Tuesday.
But it still has a long way to go before it’s really started to take a hit.
Write to Ben Levisohn at [email protected]
