Why Tesla Stock Was Slammed on Friday
Shares of Tesla (NASDAQ: TSLA) sank on Friday, declining as much as 10.8% at one point during the trading day. By the time the market closed, the stock was down 6.4%.
The electric-car maker stock's beating was likely driven primarily by a tough day in the market for many stocks -- particularly for growth stocks like Tesla. But the continued drama in the news about Tesla CEO Elon Musk's offer to buy Twitter (NYSE: TWTR) may also be having a negative impact on the stock.
Though Tesla's business has been doing great this year, its stock hasn't. Year to date, the stock is down 37% -- much worse than the S&P 500's 18% decline over that same period. The stock's downward trend has largely been tied to investors' skittishness toward highly valued growth stocks. With a price-to-earnings ratio of about 90 and a fast-growing top line, Tesla fits squarely into the growth stock category.
Source Fool.com
