Tesla Shares Run Into Bear, Shift Into Reverse
Tesla shares fell more than 14 percent to about $109 Tuesday after a Goldman Sachs analyst said they were likely overvalued. According to Goldman’s Patrick Archambault, the electric car maker’s shares are worth about $113 apiece in a best-case scenario, and $58 in a worst-case scenario. That being the case, he slapped an $84-a-share target price on the stock, well below where it has been trading.
Bad news for Tesla, whose shares had soared to an all-time high earlier this week. Today the stock charted the biggest one-day drop it has seen since January 2012. The sell-off comes the same week Tesla joined the Nasdaq 100 index (replacing Oracle) and about a month before the company is scheduled to post second-quarter earnings.