Bursting of the Tesla stock bubble

Tesla CEO Elon Musk in a June 2010 photo after his company's IPO. Tesla reported a massive loss - its first earnings deficit - for the first three months of this year, along with a sharp drop in sales.
Tesla CEO Elon Musk in a June 2010 photo after his company's IPO. Tesla reported a massive loss - its first earnings deficit - for the first three months of this year, along with a sharp drop in sales.PHOTO: REUTERS

Analysts say firm faces 'code red' situation; share price may dive to US$10, says one

For Mr Elon Musk and Tesla Inc, the blows from Wall Street came one after another this past week - a relentless barrage that left the stock so hammered that some in the market now wonder if it can ever regain its status as the ultimate 21st century disrupter.

Morgan Stanley threw the biggest blow, declaring that, in a worst-case scenario, Tesla's shares - which closed at US$190.63 on Friday - could sink to US$10.

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A version of this article appeared in the print edition of The Straits Times on May 27, 2019, with the headline 'Bursting of the Tesla stock bubble'. Print Edition | Subscribe