Tesla (NASDAQ: TSLA) had a great 2020. Despite the COVID-19 pandemic, Tesla managed to deliver 36% more cars than it did in 2019. It rolled out exciting model upgrades and technology and got its financial house ordered enough to qualify for inclusion in the S&P 500. Investors were clearly excited about all this, sending Tesla share prices up over 700%.
But Tesla is having a rough start to 2021. Since hitting a record $900 per share in January, Tesla stock has been in a downward spiral. Even when Tesla reported its first annual profit and a 28% revenue increase for the year 2020 — its best-ever financial result — investors saw no cause to celebrate. On March 8, Tesla’s stock price dropped to $547, a five-month low. The stock now trades at $692 a share as of this writing, down about 23% from its peak.
So is the party finally over for Tesla? We don’t know for sure. Still, it would be great to zoom in on why investors are selling Tesla.