Why Tesla Stock Is Getting Crushed Today
Shares of Tesla Motors traded lower by as much as 7% on Monday to around $90 apiece. That's a steep decline from the stock's high last week of more than $114 per share. With the EV maker's annual shareholder meeting set for tomorrow, should this move in the stock be cause for concern? In a word: No.
Tesla's stock has had such a nice run in recent months that today's sell-off is likely just investors taking some profits off the table. Tesla stock is up a whopping 188% so far this year on the heels of the company's first profitable quarter, an epic short squeeze in the stock, and its recent supercharger rollout.
However, smart investors know that Tesla is a long-term play. While the stock will certainly be volatile in the quarters to come, I suspect shares of Tesla will greatly reward those investors with a three- to five-year time horizon.
The company's disruptive retail strategy is still in the early stages both in the U.S. and abroad. Additionally, Tesla plans to begin production on its third all-electric vehicle, the Model X, next year. Given these catalysts and many more, I'm confident that Tesla has much more to offer investors down the road.
The article Why Tesla Stock Is Getting Crushed Today originally appeared on Fool.com.Fool contributor Tamara Rutter owns shares of Tesla Motors. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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