Tesla Inc’s troubles continued to pile up.
On Monday, the stock closed at its lowest level since March 2017, shaving off more than $10 billion off its market capitalisation in one week.
The rout was sparked by an SEC investigation into its famous CEO Elon Musk’s tweets on taking the carmaker private. A subsequent tweet storm mocking the agency itself, and an unflattering comparison to Lehman Brothers Holdings Inc. shaved off even more value. Shares continued to extend losses for a fifth straight session on Monday, and fell 4.3% to the lowest in more than 18 months.
The stock rebounded in after-hours trading, recovering about 1%, after Macquarie initiated coverage of Tesla with an outperform rating.
Investors have continued to punish Tesla, even as its Model 3 is becoming one of the best-selling sedans in America. The company made headlines when it managed the feat to deliver on its third-quarter projections for the electric car, leading JP Morgan to boost its estimates regarding it.
Maynard Um, an analyst at Macquarie stated: “The auto industry is on the precipice of a multi-decade transformation driven by disruptive innovation and technology, which Tesla is “uniquely positioned” to lead.”
Regarding Musk, there have been rumours that Tesla is looking for an experienced executive to “handle” Musk, in order to keep his erratic behavior in check.