Tesla Motors Inc TSLA shareholders may have just gotten a taste of how the stock could react to any potential future delays in Model 3 production. Tesla shares plummeted from above $198 to as low as $193.26 in a matter of minutes Tuesday following a change to the company’s Model 3 reservation website.
As recently as October 16, the site read, “Deliveries begin late 2017." However it now reads, “Production begins late 2017. Delivery estimate for new reservations is mid 2018 or later.”
Traders began dumping the stock on what seemed to be a major delivery delay, but a Tesla spokesperson quickly dispelled the rumors.
“Today’s website update does not reflect any change in our plans. We still plan to begin Model 3 deliveries in 2017, and we adjusted the delivery date on our marketing page to reflect more accurate timing for new/future reservation holders,” the spokesperson told Benzinga.
The statement sent Tesla shares whipping back above $198 within a matter of minutes.
Tesla is currently valued at more than 60 percent the market cap of General Motors Company GM despite the fact that Tesla produced only 24,500 vehicles in Q3.
Tuesday’s false alarm shows just how much headline risk is currently associated with the pricey stock, especially when it comes to Model 3 guidance.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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