Actions of Tesla (NASDAQ: TSLA) fell sharply on Monday morning, down 7.9%. As of 11:30 a.m. EDT, however, the stock was down only 2%.
The drop in the growth stock was likely mainly due to a wider market sell-off on Monday and fears that third-quarter deliveries may be below expectations. But stocks could recoup much of that loss because investors anxiously await the electric carmaker’s Battery Day event tomorrow, which is expected to include important product news regarding Tesla’s recent innovation in the market. battery technology.
Highlighting the decline in the global market on Monday, the S&P 500 is down about 2.6% as of 11:30 a.m. EDT. It was not surprising to see Tesla stock fall even more than the wider market, as stocks have risen more than 800% in the past 12 months. With such an incredible gain, investors should expect significant volatility for the automaker’s stock.
Another possible reason for the pessimism about Tesla shares on Monday morning could have been the news of an email leaked by CEO Elon Musk to employees saying record deliveries for the quarter were within reach. This implied that deliveries during the period could be at a rate close to Tesla’s previous quarterly record of around 112,000 vehicles. Many investors and analysts expected significantly higher deliveries.
Perhaps helping the stock regain some of its loss on Monday morning, investors are eagerly awaiting the Tesla battery day event tomorrow afternoon. There are rumors that the electric car company will unveil new battery cell chemistry and possibly a larger battery production system.