Tesla runs out of juice again

Tesla cars are so fricken cool!!!

Prices for the cult stock Tesla tanked again this week. Tesla this week reported a better than expected
Q3 earnings report, so why did the stock tank?

Essentially Tesla has become so hyped that anything better than perfect will cause turmoil for this stock. So much performance is expected form the company that to not perform to that expectation will effect the stock price.

In this quarter Tesla outperformed their own goals of selling 5000 new model S cars, however investors were expecting no less than 5850 cars. Tesla delivered around 5500 new models. Now the problem is not that there is not demand for the car. Tesla actually can not keep up with their demand, and this is not their fault. Currently they are having shortage of batteries which is slowing down sales. Even though this set back is not Tesla's fault it still had a negative affect on stock price because of the unreasonable expectation set for the company.

The result of this set back send stocks plunging yesterday dropping  from $176 to $142 where it sits today. The fall was so rapid yesterday it triggered the exchanges short sale circuit breaker (this does not happen often). This breaker temporarily stops sales of borrowed shares.

Analysts estimate the stocks actual value is somewhere around 141$. However with the amount of hype and attention the company is getting, this stock will likely still see a lot of dynamic change. Rising on minor achievements and crashing on small setbacks.