As much as I love the concept of Tesla and electric cars, it just seems really frightening that every time there is slightly any bad news, the stock drops by 5-10%. It is a volatile stock but as mentioned before, it has gone up about 400% year to date.
When there was fire due to a battery issue, the stock price took a dive from 180 to 168.
http://www.teslamotors.com/blog/model-s-fire
When it was downgraded by Lazard on August 4th, it dropped about 5%.
When it was downgraded by Goldman Sachs, it went from 130 to 109.
There really is a bubble out there and investors are riding that wave. However, any time there is a hint of bad news, they lock in their profits and jump out.
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