It’s been a bad month for Tesla (NASDAQ:TSLA) and the company’s investors just received more bad news. Shares have been sliding all day since Senator Elizabeth Warren’s letter to the Tesla board of directors cast a negative spotlight on CEO Elon Musk. This afternoon, TSLA stock slid to a 15-month low when it hit $140.60 per share.
Since then, however, it has kept falling and dipped even further. As of this writing, it is down more than 8% for the day and currently trades at $137.80 per share.
The company has seen plenty of bad news lately as investors worry about Musk’s lack of focus. However, this new negative milestone is highly concerning. Let’s take a look at the reasons why TSLA stock is struggling so much.
A New Low for TSLA Stock
Much of Tesla’s problems can be attributed to Musk. The CEO who turned the company into an industry leader and revolutionized the electric vehicle (EV) market hasn’t been too concerned with cars lately. Since acquiring Twitter, he’s been highly preoccupied with that, and as noted, investors aren’t pleased. Musk has also been offloading large amounts of TSLA stock, which hasn’t helped either.
Musk recently made headlines when he ran a Twitter poll asking if he should resign as CEO. When the majority of users voted yes, Musk indicated he was serious about the resignation. That briefly helped TSLA stock rise as investors hoped it would mean a return to Tesla. But as Seeking Alpha reports, there is still the possibility that Musk will be distracted for months with the search for a new Twitter CEO. That factor is likely helping push TSLA stock down today.
Additionally, Wall Street analysts have grown increasingly bearish on Tesla as shares have fallen. Experts at firms such as Goldman Sachs and RBC have lowered their price targets. More recently, Chris McNally of Evercore ISI joined the group, slashing his price prediction and reiterating a “hold” rating. This trend is likely to continue as TSLA stock falls further.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.