Tesla (TSLA) Stock Today Down 12% as Oil Price War Hits Everyone without Any Exceptions

| Updated
by Steve Muchoki · 3 min read
Tesla (TSLA) Stock Today Down 12% as Oil Price War Hits Everyone without Any Exceptions
Photo: Shutterstock

Shares of Tesla (TSLA) were down 12.01% at the opening today as the oil price war between OPEC and Russia alongside deepening coronavirus anxiety in the U.S. rattled investors.

Tesla Inc (NASDAQ: TSLA) stock has fallen drastically today by 12.01% retesting February’s low and support at the same time. Tesla stock market received a hard blow after OPEC and the Russians failed to come into a common agreement on the crude oil prices amidst the decline in global demand that has been as a result of the ongoing coronavirus anxiety.

Solar stocks alongside Nio Inc stocks were also hit hard as the oil prices tumbled over 20% during the early trading hours as the market opened. The oil prices affect solar and auto carmakers since cheap oil prices make the technology less attractive thus falling as the oil price becomes more affordable to the general public.

Among the solar energy stocks significantly affected includes Vivint Solar Inc (NYSE: VSLR), Enphase Energy Inc (NASDAQ: ENPH), Canadian Solar Inc (NASDAQ: CSIQ) and also JinkoSolar Holding Co. Ltd (NYS: JKS) which all saw over 10-15% decline as the oil prices tumbled.

Tesla stock has reversed greatly after a huge bull rally that had dominated the chart before the coronavirus outbreak, leaving a critical question, if they were fueled by crazy speculative trading that mostly dominates the crypto market.

According to Jefferies analyst Philippe Houchois, even though Tesla has a bright future, it is currently overrated and gives it a rating of about $800. He said that ‘however convinced we are about the Tesla equity opportunity, we still need a valuation to be grounded into some visibility on market size and potential’

Huochois believes Tesla has a huge long term return investment as it will take over the EV market, where the world market is headed. According to John Murphy, it is not business as usual in Tesla that is not giving the investors the real thing.

Murphy said:

“While TSLA management believes its business has grown to the point of being self-funding, we believe that TSLA’s pathway to becoming a self-funding entity is still dubious.”

The Bank of America has an underperformance rating on Tesla stocks at $370, way below the day’s market price.

Today It Is Falling but Will Tesla Stock Survive Coronavirus Menace?

Tesla flipped the calendar on a high note, promising investors huge returns after rallying stocks approached $1,000 price level. However, the Wuhan coronavirus outbreak began affecting the company negatively after, the management temporarily closed the china stores to prevent further spread of the deadly virus.

As a result, a lot of customers who were counting on their unit to be delivered by February resulted in waiting longer than expected. As the coronavirus continued spreading worldwide, to the American region specifically, investors began walking away from a risky volatile market.

Now after coronavirus has negatively affected the crude oil industry, it is downing to Elon Musk that he cannot avoid the downfall of the overrated Tesla stock at the moment. Tesla being a future promising industry, will have to endure the current storm until its time of market adoption hits the consumers globally.

Business News, Market News, News, Stocks, Wall Street
Steve Muchoki
Author Steve Muchoki

Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!

Related Articles