Tesla’s stock suffered a third straight day of losses Thursday as investors apparently grapple with a growing realization that the company’s competitors are gaining ground. The shares closed at $308.83, down 5.6% for the day and 16.6% from Monday’s opening price of $370.24.
The losses continued after Swedish brand Volvo announced Wednesday that it would introduce only electric vehicles and hybrids after 2019, positioning the Chinese-owned company as a direct competitor to Tesla.
The Silicon Valley automaker is also reeling from its announcement Monday that it had missed second-quarter sales goals amid a “severe” shortfall of certain batteries.
To be sure, Tesla stock is famously volatile, and the company has drawn a significant number of investors who bet against its shares in a process known as shorting. Shares are still up nearly 44% on the year.
CEO Elon Musk had even taken the unusual step of saying that the company’s stock was overvalued.
But Barclays analyst Brian Johnson said Wednesday in a note to investors that Volvo’s announcement was “more evidence” for a “hard reality case that Tesla will face intense competition” from global automakers.
The bad news has overshadowed Musk’s promising announcement Monday that the company will begin production of the Model 3 mass-market electric car this month. Musk projected that the company may be able to manufacture 20,000 units of the Model 3 per month by December.
A Tesla spokesman was not immediately available to comment Thursday afternoon on the stock decline, though few publicly traded companies speak publicly about market developments.
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