From Tesla To Virgin Galactic, A Few Hot Stocks Don't Make A Market Crash
Bernstein downgraded Tesla's stock to underperform. Not just Tesla, tech stock in general tanked this week, Amazon, Netflix, Google, nVidia, Microsoft etc. Tesla stock opened at $755 on Friday morning, and by 11:20 ET had suddenly fallen by more than 8%. Musk tweeted his thoughts on $TSLA'˜s value just nine minutes earlier.
But as of now, despite all the ups-and-downs, the company's total market value is greater than General Motors and Ford put together. Tesla's market cap is 300% higher than all three (307 billion), they usually delivered solely 195,000 autos - ASTONISHING. If Tesla shares keep climbing, the short sellers are going to regret that moment they decided to bet against the stock.
There will be no stopping Tesla share price rise in conjunction with the proliferation of electrical energy at the expense of fossil fuels in order to reduce CO2 emissions, when this mission is complete the rally will end, I dont see that as foreseeable and I dont know how much "plus" Tesla Analysis is on top of the $6,000 but my guess is its a lot.
A study by Carl-Emil Lindholm of the Stockholm School of Economics foundthat in the week after the announcement of a CEO's exit, the stock price of Swedish firms fell by an average of 1.7%. Yet research by George Gianarikas, of Fundstrat Global Advisors has found a small majority ofUS firms that change CEOsbeat the S&P 500 index in thesix months after the new boss arrives.
Tesla shares were down 1.56 percent after it was reported that a third fatal crash potentially involving the company's Autopilot system occurred on March 1. Tesla's senior director of communications Dave Arnold also announced his departure from the company.
There's been even more bullishness this month after CEO Elon Musk indicated that the company's electric semi-trucks would also start to see production ramp up, although it's not clear when that might happen. Tesla shares fell back sharply yesterday, but only after the most astonishing rise.
By purchasing stocks en masse in proportion to market cap, regardless of fundamentals, index funds and other passive investment vehicles have reversed the downward pressure traditional stock trading, informed by research and analysis, exerts on speculative securities, Green said.