Tesla stock continues to tumble as crude prices slide on increasing US crude supplies and Devonshire Research’s short call
Published By: Ken Bock on March 23, 2016 03:43 pm EST
Tesla Motors Inc (NASDAQ:TSLA) stock’s impressive run of seven-trading session has come to an end and the stock is trading in the bear’s territory for the second straight session. The negative sentiments surround the stock despite the electric vehicle (EV) maker’s recent initiative to offer “Ludicrous” mode option for all P90D cars.
On Monday, Tesla shares came close to the $240 mark, but since then has been on a reverse gear after Devonshire Research Group released a report indicating a short call on the stock. The stock reached as low as $230.32 on Wednesday, down 1.67% from Tuesday’s closing.
All of Tesla Model S and Model P90D owners can now upgrade performance level of their EVs from Insane to Ludicrous for $10,000 (excluding labor/taxes). The vehicles’ acceleration time will decrease by 10.7% to 2.8 seconds on Model S and 15.8% to 3.2 seconds on Model X. Model S P90D could reach quarter-mile in 10.90 seconds after the upgrade. The vehicles will also receive underlined-P90D badges, in which the underline indicates the Ludicrous mode.
Devonshire believes that not only Tesla stock is overvalued; it is bound to lose its competitive advantage. Additionally, despite being an environmental friendly carmaker, the company’s car product and batteries’ disposal are polluting the environment more than gasoline-driven cars.
Tesla shares are also being affected by sprawling crude price, which has put the Street under pressure today. By 10:44 AM EDT, the S&P 500 and Dow Jones were trading down 0.32% (6.53 points) and 0.23% (40.40 points), respectively.
US Energy Information Administrated announced today crude supplies increased by 9.4 million barrels during the week ended on March 18. The jump is of more than 8.8 million barrels reported by the American Petroleum Institute. West Texas Intermediate (WTI) futures were trading down 2.5% ($1) at $40.45 as of 10:03 AM EDT today