Tesla stocks were soaring just a few months, ago but lately the green automaker’s portfolio has been stuck in neutral, sliding further down the scale and not rebounding like other tech and biotech stocks recently have.
To put things into perspective, just two months ago, Tesla was so hot it’s stock raced past the much-vaulted $200 region. Its value is now 20 percent less in that same timeframe.
To be fair, other hot stocks like Facebook Inc., Twitter Inc. and Netflix Inc. have sputtered too, but they’ve all rebounded in the past couple days. Tesla dropped another six percent in just one day recently.
Perhaps people are scared to invest in a company that has been seen publicly squabbling with states over the right to sell their cars directly to consumers. Some states like New York and Ohio ultimately accommodated Tesla, but Arizona, for example, didn’t.
Maybe news of Tesla’s $5 billion Gigafactory will help stocks sell, even if sales of the Model S too are stalling in the U.S. The factory will produce more lithium-ion batteries than ever before and create 6,500 jobs for whichever state lands it.
The Gigafactory will also help Tesla create a car that could retail around $40,000, an easy sell for even the most average consumer. That’s a lot of goodwill and a great opportunity for Tesla to reach new consumers.
Whatever happens in the U.S., there’s always CEO Elon Musk’s big plans in China, right?