NEW YORK (TheStreet) -- Tesla (TSLA) is climbing back from Monday's losses, up 1.9% to $123.89 by early afternoon. Shares of the automaker have taken a beaten recently after the company's once-spotless reputation came under fire.
A Bad Month For Tesla
Since Oct. 21, the electric vehicle (EV) maker has lost almost a third of its value, following three reported fires in less than six weeks. Investigators at the National Highway Transportation Safety Administration (NHTSA) have announced they will launch a formal investigation into the safety of Tesla's Model S.
CEO Elon Musk has been vocal in his disapproval of how the media has misrepresented the Model S' fire risk. Speaking to CNBC last week, Musk said, "If you read the headlines, it sounds like Tesla's have a greater propensity to catch fire than other cars. In actuality, nothing could be further from the truth."
To ease concerns, however, Musk detailed the new safety steps on the company blog, including updated suspension and an amended warranty to cover fire damage.
Also affecting share prices over the month, Tesla noted it has too little supply to match demand, sparking concerns the company cannot fulfill its growth potential. For the fourth-quarter, the company expects to deliver fewer than 6,000 Model S units.
Though Tesla has seen a tremendous 273.1% run-up through 2013, many investors remain cautious over whether shares are overvalued.
As TheStreet technical expert and Trifecta Stocks portfolio manager Bob Lang explains:
"The chart shows a very oversold condition at this point but much of the recent price action has been accompanied by high volume selling, or institutional distribution. We often find when the big money is fleeing a stock the rest of the crowd is left to try and pick up the pieces. However, that is generally a tough challenge due to the fact so much supply is available. I would stay away from the name here."