Why Tesla’s electric slide could be a buying opportunity

On Wednesday, Tesla announced it had delivered 90,700 vehicles in the fourth quarter, falling short of analysts’ expectations.

In response, shares of the electric car maker tumbled by as much as 10 percent, before rebounding slightly to end the day.

Over the past five years, Tesla has suffered similar slides of at least 6 percent in a single trading day on 26 other occasions.

Following those losses, the stock tends to rebound – gaining nearly 10 percent a month later.

The stock traded positively in such situations 77 percent of the time.

To compare, the S&P 500 gains about 1 percent during those periods.

Leave a Reply

Your email address will not be published. Required fields are marked *

59 − 58 =