The Buzz

All markets and investing news all the time

Tesla stock dips on poor Model S review

February 11, 2013: 3:02 PM ET

The idea of a driving an electric car has always intrigued me, but after reading a New York Times review of the Tesla (TSLA) Model S on I-95, it sounds like a total nightmare.

According to the writer, the battery on the Model S drained much quicker than promised in cold weather during a recent trip up and down the East Coast. With only a few charging stations in the Northeast, the writer was forced to turn off the heat in 30 degree weather to conserve power. And that didn't help him much. At one point he needed to get towed for 45 minutes to the next charging station.

The New York Times article on Tesla seemed to spook investors. Tesla's stock dropped more than 3% Monday. So much for all those "Car of the Year" awards?

Before we all get too hasty, the stock bounced back Monday afternoon after Tesla CEO Elon Musk took to the Twittersphere in defense of the Model S.

howardlindzon
Media spats are never fun to watch... I love $TSLA defending this 'test' drive which as I mentioned earlier was a none issue in a few weeks

So very true. Let's not forget the infamous Ackman-Loeb spat on CNBC just a couple of weeks ago.

arbit2ageur
Mandy trying to recreate the Icahn Ackman $HLF drama on cnbc with $TSLA elon musk and nytimnes

Musk is definitely not taking the NYT story lying down.

 jmover
$TSLA cold weather battery issues. Driving S on east coast is very diff. NYT: Stalled Out on Tesla's Electric Highway http://t.co/PsTWFZla

DeidreZune
Tesla's Model S was named "Car of the Year" for 2013 by Motor Trend magazine http://t.co/SmTOJ8sT $TSLA Would u buy a Model S?

The NYT review is just one of the short-term hits that Tesla shareholders must be willing to absorb. As the Wall Street Journal points out, Tesla must produce 400 cars per week to break even. As of October, it was making 200 a week. Analysts are predicting that Tesla will post a loss of 53 cents a share for the fourth quarter.

 reformedbroker
Tesla is finally making 400 Model S's per week, quarterly report coming soon...http://stks.co/r2EO $TSLA

Worse perhaps, shareholders are pricing in explosive sales growth for Tesla.  One trader found it odd that Tesla is only worth a few billion less than a much older and larger car company.

 PlanMaestro
I don't know much about $TSLA, but ain't crazy that is worth as much as $FIATY that includes Ferrari, Masserati, RAM, and Jeep?

Join the Conversation
Fear & Greed
Sponsored by
About This Author
Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! Yes, $UA is big momo stock. And it's off lows of day. But still not sure why it's down this much on strong #s.
Powered by WordPress.com VIP.