Shares of Tesla (NASDAQ: TSLA) fell sharply on Monday morning, declining as much as 7.9%. As of 11:30 a.m. EDT, however, the stock was only down 2%.
The growth stock's decline was likely driven primarily by a broader market sell-off on Monday and worries that third-quarter deliveries could be lower than expected. But shares may be recovering much of this loss because investors are looking forward to the electric-car maker's Battery Day event tomorrow, which is expected to include some important product news regarding Tesla's recent innovation in battery technology.
Highlighting bearishness in the overall market on Monday, the S&P 500 is down about 2.6% as of 11:30 a.m. EDT. It wasn't surprising to see Tesla stock falling even more than the broader market, as shares have risen more than 800% over the past 12 months. With such an incredible gain behind it, investors should expect significant volatility for the automaker's stock.
Another possible reason for pessimism toward Tesla stock on Monday morning could have been news of a leaked email from CEO Elon Musk to employees that said record deliveries for the quarter were within reach. This implied that deliveries during the period could be on pace to be around Tesla's previous quarterly record of approximately 112,000 vehicles. Many investors and analysts were expecting significantly higher deliveries.
Perhaps helping the stock regain some of its loss on Monday morning, investors are eagerly awaiting Tesla's Battery Day event tomorrow afternoon. It's rumored the electric-car company will unveil new battery cell chemistry and perhaps a higher-volume battery production system.
10 stocks we like better than Tesla
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 1, 2020
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.