Tesla shares recover after analyst's prediction of trouble

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Shares of Tesla opened lower Thursday, but recovered into positive territory a day after an influential analyst questioned whether the company will become a restructuring story.

Stock in the Palo Alto, California, company fell 3% after the opening bell but then rebounded within an hour. It was trading up 2.5% to $197.61.

The volatility came after Morgan Stanley analyst Adam Jonas told on a private call that demand for Tesla's cars was lower than predicted. He says if it continues into next year then Tesla will become a restructuring story. A recording of the call was obtained by The Associated Press.

Jonas also says that Tesla has 49,000 employees and is the size of a that sells a million vehicles per year. Last year it sold 245,000.

© 2019 The Associated Press. All rights reserved.

Citation: Tesla shares recover after analyst's prediction of trouble (2019, May 23) retrieved 8 December 2022 from https://phys.org/news/2019-05-tesla-recover-analyst.html
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