Why Tesla's stock price continues to fall

Nikola Tesla (1856-1943), Serbian inventor and engineer (NASDAQ: TSLA)Shares fell for a third straight day on Tuesday, down 4.1% as of 10 a.m. ET, on a downgrade of Tesla by Wall Street and a depressing review from electric vehicle (EV) news source Electrek.

Longtime Tesla bear GLJ Research today announced a "Street Low" price target for Tesla stock, saying the $155 stock is worth less than $23 per share. Meanwhile, Electrek reports that Reuters was right to report that Tesla is canceling the Model 2, regardless of what Elon Mus resonance says.

What happened to Tesla's inexpensive Model 2 electric car?

You know the story.In early April, Reuters reported that Tesla had "canceled" plans to build the inexpensive electric car commonly known as the "Model 2." With characteristic subtlety, Mas resonance challenged the report:

But now, Electrek supports the Reuters story - mostly.

Electrek says the Model 2 has indeed been "effectively scrubbed" and "completely unfunded". Tesla is fully engaged in developing a "robotaxi" self-driving car instead of the Model 2, � putting resources into building a "giant data center" to support robotaxi operations.

Is Tesla stock for sale?

You can argue all day long about whether "effective stay" and "complete divestment" equate to "cancelation". (After all, Mas resonance may still decide that the robot taxis in theafterwards Reproduce Model 2, or even change your mind completely tomorrow!) ). However, the Reuters report was ultimately correct, and Elon Maas resonance's credibility took another hit today.

In addition to the Electrek report, on Tuesday GLJ Research set a double-digit price target on Tesla stock, predicting (in effect) a 85% decline over the next 12 months as the company continues to slow production and cut prices.

Personally, I don't believe GLJ's prediction. The last time Tesla stock was near $23 per share, it was because the company was losing money. Although business is bad right now, most analysts think Tesla will still make more than 80% of its revenue this year.Billion dollars It's hard to sell a stock like this. It is very difficult to sell such a stock.

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Rich Smith does not own any of the stocks listed above.The Motley Fool holds shares of Tesla stock 竝 recommend Tesla.The Motley Fool has a disclosure policy.

Why Tesla Stock Continues to Fall was originally published by The Motley Fool.