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Has there been a high-profile stock that was more volatile than Tesla (NASDAQ: TSLA) recently?
After a burst of optimism among investors based on the company’s latest delivery figures, the bears took over on Wednesday. A disturbing media report was responsible for the rapid mood swing; this caused Tesla’s stock price to fall by more than 8% during the Hump Day trading session.
A major product introduction apparently postponed
Before the market opened, Bloomberg published an article stating that Tesla will delay 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, August 8. According to Bloomberg’s sources, that will be postponed by about two months.
Previously, investors were understandably enthusiastic about the robotaxi. Such a vessel could open new revenue streams for Tesla if managed effectively. So any delay is a cause for concern.
The electric vehicle (EV) maker has not yet officially responded to the Bloomberg report.
The second quarter results will be published soon
While the robotaxi news certainly impacted sentiment on Tesla stock, the main event this month will be the company’s second-quarter earnings. These are expected to be released on Tuesday, July 23, and will provide a clearer picture of whether the company is showing real improvement in its business and fundamentals – or at least not showing significant erosion.
On average, analysts who follow Tesla stock expect a slight (2%) decline in year-over-year revenue to just over $24 billion. The downturn should be more dramatic, as these forecasters assume a combined profitability of $0.61 per share. A year ago the figure was $0.91.
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Erik Volkman has no position in any of the stocks mentioned. The Motley Fool holds and recommends positions in Tesla. The Motley Fool has one disclosure policy.
Why Tesla shares posted an 8% loss on Wednesday was originally published by The Motley Fool