TSLA dropped to $185.60 in pre-market trading on Wed. after Musk’s hour long Q/A session in Detroit last night, and rebounded to $190 at the opening bell.
Speculation is that comments about the China market and Tesla’s profitability were to blame. One analysis, via International Business Times:
“I expect we’ll achieve profitability in 2020,” Musk said Tuesday at the Automotive News World Congress event during the 2015 North American International Auto Show’s press days, adding that he expects to build “a few million cars” a year by 2025, up from less than 40,000 last year. By comparison, Toyota, the world’s largest automaker, took 77 years to reach annual production of about 10 million vehicles, achieved in 2014. …
Musk also said the pace of China sales declined in the fourth quarter over Chinese consumer perceptions that the Tesla network of quick-charging stations – which give Model S owners free electricity to charge up their cars — isn’t big enough yet.”
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