Buckle up Tesla share price ride is going to be bumpy

[Nadilapars]

Tesla share price has risen on expectations electric cars will dominate automobile sales in the future and high demand for its models. But damaging news reports have concerned the markets and might affect the company’s short term value

This looks like the time for traders to bet against Tesla (TSLA) shares in the short term as the market reacts to reports that Model 3 electric vehicle (EV) deliveries are going to be delayed with news stories about escalating production costs, production line issues and lay-offs throwing doubt on the company’s ability to turn a significant profit on its new model. 

The chart above shows that after steep rise of 68% throughout the year the share price is showing signs of volatility. 

Barclays were among the first to advise their clients to short Tesla. Their analyst Brian Johnson suggesting a $210 price target – well below the $340 consensus on Wall Street. 

Barclays feel Tesla’s November 19 announcement about truck production will be decisive in swaying investor confidence in the company. 

 

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