How Far Could Tesla Stock Fall?
Tesla (NASDAQ: TSLA) became the most valuable automaker in the world in 2020 as its stock soared nearly 750%. At its peak, Tesla was worth over $800 billion.
These epic gains came despite the fact that Tesla sells just half a million vehicles a year, compared to around 10 million vehicles for Toyota. They came despite the fact that Tesla reports a profit solely due to its sale of regulatory credits. They came despite a mountain of electric car competition on the horizon from traditional automakers and upstarts alike. They came despite Tesla's valuation reaching a level that simply can't be justified without whimsical thinking.
The rally has now started to unwind. At market open on Tuesday, Tesla stock was down about 24% from its peak in late January. Other popular growth stocks were also suffering.
Source Fool.com
