What is Going on with Tesla Stock?
The Ups and Downs of Tesla StockTesla's stock has been in the news for the past few weeks due to its wild swings in price. Investors and analysts have been trying to figure out the cause of the seemingly random movements of the stock. Many have pointed to speculation and volatility as the main culprits.Most recently, the stock tanked by 24% in one day after analyst conferences reported a drop in the company’s income and cash flow. When news of this reached the public, many investors began to worry about their investments. The stock fell even further as some analysts speculated that the company might be facing near-term insolvency.On the flipside, the stock saw some wild swings back in 2020. The stock rocketed as high as 1500% as the company accomplished a long-term goal of creating a functioning electric vehicle. This surge of confidence from the public helped propel the stock to even greater heights as investors began to believe in the promise of the new technology. What has become clear is that Tesla’s stock price is subject to a significant amount of volatility. This is why many investors have become cautious with the stock. Despite the wild ride, the company has managed to remain profitable and the stock has surged to a staggering $554.62 per share as of May 2021.Going forward, it is important for investors to exercise caution when purchasing Tesla stock. The stock has proven that it can be highly volatile, and there is no guarantee that it will continue to rise or remain in its current range. Therefore, it is important to only invest what you can afford to lose and to do as much research as possible before investing.