Tesla Shares Drop by Almost 18%
AP Photo/Paul Sakuma
Main page News, Tesla

The shares of the electric car maker have fallen by almost 18% after 2 days posting gains. As a result, the company's market cap has dropped by $30B to $132B.

This sharp and unexpected decline is reportedly due to the temporary closure of the company's factory in Shanghai because of the coronavirus.

Tesla vice President Tao Lin announced on February 5 the delivery of electric vehicles from the Shanghai plant scheduled for early February would be delayed:

"The proposed delivery (of cars) in early February will be delayed."

Some analysts consider the recent rally of the company's shares as a "speculative bubble" and have compared it to the Bitcoin boom at the end of 2017. According to them, the average price of Tesla shares in 2020 will be less than $500.

Earlier this week, the shares of the company jumped to almost $1,000.

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