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Have there been any more volatile stocks than Tesla (TSLA 3. 32%) recently?
After a surge of optimism from investors following the company’s latest delivery numbers, the bears took control on Wednesday. A disturbing media report was to blame for the immediate mood swing; This caused Tesla’s stock value to drop more than 8% in the Hump Day trading session.
Before the market opened, Bloomberg published an article indicating that Tesla would postpone the introduction of its long-awaited robotaxi. Citing “anonymous other people with wisdom in the decision,” this was done so the robotaxi team could simply rework some elements of the vehicle and build more prototypes.
Tesla CEO Elon Musk had set the arrival date of the robotaxi for Thursday, August 8. According to Bloomberg’s sources, this would be delayed by about two months.
Understandably, investors were excited about robotaxi before. Such an industry can open up new revenue streams for Tesla if effectively controlled. Any delay is worrying.
The electric vehicle (EV) maker is yet to officially comment on the Bloomberg report.
While the robo-taxi news has dented confidence in Tesla’s stock, the main event to watch out for this month will be the company’s second-quarter results. They are expected to be released on Tuesday, July 23 and will provide a clearer picture of whether the company is showing true improvement in its operations and basics, or at least not showing significant erosion.
On average, analysts who stick to Tesla stock expect a slight (2%) drop in revenue year-over-year, to just over $24 billion. The drop in currency effects is expected to be more dramatic, as those forecasters are modeling. a collective return of $0. 61 consistent with the stock. A year ago, the figure was $0. 91.
Eric Volkman does not have any position in any of the above. The Motley Fool holds positions and recommends Tesla. The Motley Fool has a disclosure policy.
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