Tesla stock below $200 for first time in nearly two-and-a-half years
The electric carmaker faces a ‘Kilimanjaro-like uphill climb’ to hit profitability goals in the second half of 2019
New York — As the challenges for Tesla continue to mount, the shares of the company are plunging sharply, falling below $200 for the first time since December 2016 on Monday. The stock has been struggling in 2019, down nearly 41% to date, but the recent deepening trade rift between US and China, cost-cutting moves, fallout from a fatal crash involving Autopilot and cautious commentary from Wall Street analysts have sent the shares into a free fall. In a note on Sunday, Wedbush analyst Dan Ives said the electric-carmaker faced a “Kilimanjaro-like uphill climb” to hit profitability goals in the second half of the year, while Needham analyst Rajvindra Gill said the latest report from the National Transportation Safety Board on a fatal Tesla crash “could cast doubt on Tesla’s self-driving capabilities, which have been highly touted by Mr Musk”. “The Autopilot feature has been an integral component of the company’s perceived competitive differentiation and hence its high valuation,” Gill...
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