Insights

Why Tesla stock dropped — again!

A new rival just threw some shade on Tesla’s Model S.
The post Why Tesla stock dropped — again! appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

For the second day in a row, Tesla (NASDAQ: TSLA) stock dropped Wednesday, closing the day down 2.3%.

You can probably blame Lucid Motors for that — and Investor’s Business Daily (IBD).

So what

In a report out late Tuesday — one that investors didn’t get a chance to react to until today — IBD discussed a call held with investors by Lucid management, the new electric car company being brought public by the special purpose acquisition company (SPAC) Churchill Capital Corp IV (NYSE: CCIV).

On that call, Lucid CEO Peter Rawlinson confirmed that his company is on track to begin producing its Lucid Air electric vehicle (EV) by the second half of 2021. (Hint: We’re already in the second half of 2021, so that promise is getting a bit long in the tooth.) Nevertheless, according to Lucid’s promotional materials, the new Air beats Tesla’s Model S in battery efficiency. And Lucid is boasting that with reservations for the sale of 10,000 cars already, it is sitting on a sales pipeline worth $900 million.

That’s $900 million in revenue that one imagines would probably have otherwise gone to Tesla had it remained the only automobile manufacturer manufacturing electric cars.

Now what

From Elon Musk’s perspective, this is all probably fine. It was always his intention to ignite an EV revolution, and the more companies that go electric, the better, from his point of view — especially given his preference for building top-of-the-line electric supercars like the Roadster and Model S.

Nevertheless, competition is heating up for the electric car kingpin, as rivals from Ford to GM to now Lucid begin flooding the market with competing electric models. And with Lucid in particular targeting the top end of the market (The manufacturer’s suggested retail price — MSRP — for Lucid’s “Air Dream Edition” is reported to go as high as $162,000.), Tesla investors can no longer expect that Tesla will get to keep any specific segment of the EV market to itself.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock dropped — again! appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tesla right now?

Before you consider Tesla, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tesla wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why Tesla stock just gave back half of Monday’s gains

ASX investors were buying Tesla and Apple shares last week

ASX lithium shares are surging on Tuesday. Here’s why

Why Tesla stock took off on Monday

As markets fall, here’s how a Tesla death cross might actually matter

Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!