02.04.2020 Tesla Daily Analysis

02.04.2020 Tesla Daily Analysis

Tesla stock on Wednesday fell 8.5%-driven by a sharp drop in the broader market and closed at $481.56. This was due to a general market pullback resulting from what President Trump had said about the state of the coronavirus and how it was affecting the nation. The president said the following two weeks were going to be rough and projected that there might be 240000 deaths resulting from the virus. However, there are a couple of other factors that are in play and might be making this stock perform this way. First, a number of analysts in Wall street have lowered their price prediction for Tesla saying that the company definitely won’t meet their target because of the coronavirus. More consumers will be focusing on essential goods rather than buy cars when the economy is on the verge of a recession. Secondly, the price of oil has been going down and has reached the lowest it's ever been in almost two decades. This makes consumers prefer oil vehicles more than electrical vehicles because oil is very cheap and affordable.