Tesla Inc (TSLA) stock is currently trading at $191.30 down over 15% in the past 5 trading days. So what caused the recent dip in the stock prices ? According to the National Highway Traffic Safety Administration, the recall involves just over 40,000 2017-2021 Model S and Model X electric vehicles (EVs). In addition to the recall, Elon Musk sold $3.95 billion worth of shares in his electric car company Tesla today as per the filings with the Securities and Exchange Commission.
Fundamentally, the weakness in Tesla stock has to be blamed on Twitter. More specifically, the weakness has to be blamed on Elon Musk, who now runs both Twitter and Tesla. Is that wasn’t enough, on Monday morning, Musk endorsed voting for Republican candidates in the midterm elections.
In our opinion, only if Elon could distance himself from Twitter and focus back on TSLA or a stock buy back could bring back some life into the beaten down stock prices.