If there’s one thing that Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk is good for, it’s optimism. TSLA stock owners could use that — they are running out of fresh optimism.
Tesla’s latest announcement is that its vehicles will now be equipped with all the hardware required to make them fully autonomous. TSLA stock dropped more than 2% on the day following the news. There is an obvious explanation.
TSLA Stock Now Has a Brand New Headline Risk
Ford Motor Company (NYSE:F) and BMW have proposed fully autonomous vehicles on the road by 2021. Musk said Tesla will have one of its autonomous vehicles drive cross-country by the end of 2017.
The software required for the trip has not yet been assessed by regulators.
Why did TSLA stock open the next day down nearly 2%? Musk consistently lays out extremely aggressive self-imposed deadlines and targets for Tesla, and the company has a poor track record of delivering on those promises. It seems as if the market is growing increasingly skeptical of Musk’s optimism.
TSLA stock dropped about 2.5% in a matter of minutes on heavy volume on Oct. 18 after the market got wind of an update to Tesla’s Model 3 website.
As recently as Oct. 16, the Model 3 website promised “Deliveries begin late 2017.” This week, the language was changed to “Production begins mid 2017. Delivery estimate for new reservations is mid 2018 or later.”
Tesla was quick to respond with a statement from a spokesperson assuring investors that the update did not reflect any change in the company’s production guidance and referred only to more recent reservations. However, the aggressive selling could be a preview of where the stock is headed if the company misses any of its extremely ambitious Model 3 targets.
TSLA Stock Expectations Are Sky High
With a massive amount of debt and negative cash flow, TSLA stock is…
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