Tesla (NASDAQ: TSLA) stock was down 18.58% at the close of Monday’s trading session from its previous high of $546.62. The stock fell on Monday due to the widespread sell-off in the US markets.
Tesla share fell significantly on Monday as a result of the growing COVID-19 outbreak which caused market analysts to adjust their price target for the TSLA. On Tuesday, however, the stock was up 1.78% following an announcement that the company had plans to operate its Fremont factory. The company also announced that it had begun deliveries of its Model Y, its first crossover electric SUV.
The RBC’s Price Target Adjustment
The drop seen on Monday was mainly as a result of the growing virus outbreak and also because of the lowered target price for the stock by Wall Street analysts.
RBC Capital Markets’ analyst, Joseph Spak, cut his 12-month price target for the TSLA from $530 to $380 on Monday, citing the prevailing unpleasant environment for luxury vehicles amid the COVID-19 outbreak as the reason. He explained that this would shoot down Tesla’s expected delivery for 2020 from 500,000 to 364,000.
Tesla’s CEO Elon, Musk took to Twitter some day ago to try to calm his followers, saying that the fear associated with the COVID-19 outbreak was more potent than the virus itself.
He also told his employees to stay home if they felt ill or uncomfortable with coming to work, however, he would be at work regardless.
The Positive Developments Didn’t Age Well
Unfortunately, things didn’t go well for Tesla on Wednesday as the stock plunged to even lower depths following news that the company had been ordered to shut down its Fremont factory operations by the Alameda County Sheriff. Tesla and its CEO Elon Musk, are yet to comment on this new development.
The stock dropped by 16.03% on Wednesday, erasing almost all the gains Tesla has realized in 2020. At press time, the TSLA is trading at $361.22, which is $18.78 below the RBC’s price target.
This plunge has brought this stock to a low of more than 62% from its all-time high of $968.99, sending it even closer to its 2019 low.