Despite the auto industry feeling the pinch of the coronavirus, Tesla shares rose for a record 10 straight trading days between April 2 and April 17, but on Monday dropped sharply, Barron’s reports.
In what was the automaker’s longest-ever winning streak, its shares rose every day from April 2 to April 17, jumping from a low of about $454 to $754, an increase of 65 per cent. The rise was largely due to a report from Tesla on April 2 that confirmed better-than-expected delivery figures for the first quarter of the year with no less than 88,400 deliveries.
Tesla shares have since started to slip as Wall Street waits for the automaker to announce its first-quarter earnings on April 29. At close on April 21, Tesla shares were sitting at $686.
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Wall Street anticipates Tesla to deliver roughly 72,000 vehicles in the second quarter of the year due to the ongoing pandemic, down significantly from the 95,000 deliveries made in the second quarter of 2019.
Potentially impacting Tesla shares further is the fact that fuel has dropped to record lows. In fact, producers are now willing to pay people to take crude oil off their hands as the price fell to -$37.63 a barrel. The remarkable drop has been blamed on the coronavirus and the lack of demand for fuel as well as the price war between Saudi Arabia and Russia. With fuel now available for so little, it’s possible that demand for electric vehicles could be reduced.
