Outbreak Expected to Slash Automakers 2020 Forecast
Tesla’s stock price is currently seeing a +11.90% increase in stock price for the day. Tesla recently announced that it will be laying off nearly 75% of its employees at the California car plant and continues to figure out ways to comply with the regional lockdown. This outbreak continues to slash the automaker industry, with all three Detroit automakers testing positive for COVID-19.
Morgan Stanley recently downgraded Tesla (TSLA) in January, 2019 which caused the stock price to skyrocket, trading near the $1,000 range. In result to all of the sell-offs the market is currently having, Tesla is trading at a more realistic price. Adam Jonas, a Wall Street analyst, states that “The impact of the COVID-19 sell-off has, in our opinion, brought the stock to a more attractive level, where we believe that Tesla’s share price and valuation today adequately reflects the value of the business”.
What to expect from Tesla in the next couple weeks?
Analysts believe that within the next couple weeks Tesla will have to shut down the Fremont plant along with many other automakers due to the lockdown. It is accounted that Tesla will prepare deliveries too 420,000 to account for an expected month of lost production at the Fremont plant as the coronavirus pandemic continues to rave in the nation.