Yes, panic is slowly building in Tesla (TSLA) .
It's pretty easy to see why: the high-flying stock is reacting harshly to negative news and ignoring comments that in the past would have sent it. Case in point: The next wave of negative news that followed Goldman's brutal sell call on Wednesday (and Tesla's weaker-than-planned production figures, wrongly dropped on July 3 evening).
The Model S didn't get a top rating from the Insurance Institute for Highway Safety (IIHS), reports TheStreet's James Skinner. The IIHS cited issues with the small overlap front test, which is meant to simulate crashes into trees, poles and other vehicles, as a reason why the Model S did not receive the highest rating. IIHS Executive Vice President David Zuby said the front test remains a "hurdle" for some vehicles.
Very unfortunate crash; the car was being driven to the new owner! (Episode 5 - Topic 2) #Tesla #TeslaMotors #TeslaModelS #TeslaModel3 #TeslaModelX #TeslaRoadster #ModelS #ModelX #Model3 #Roadster #ElonMusk #Electric #EV #ElectricVehicle #ElectricCar #NoGas #TeslaGram #TeslaLife #TESLARATI #TeslaNews #News #TenTeslaTopics #Autopilot #P100D #Vegan #Crash #Teslacrash
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"Tesla made changes to the safety belt in vehicles built after January with the intent of reducing the dummy's forward movement," IIHS said. "However, when IIHS tested the modified Model S, the same problem occurred, and the rating didn't change."
As for the news investors are ignoring, top analyst Gene Munster is out very bullish on Tesla's future (again).
Bottom line: you are dumb if you try to buy this pullback. The momentum has died, and Tesla will need to deliver a good set of numbers (of any kind) likely to reignite the bullishness. Until then, stand clear of this panic.
Tesla's shares fell 4.1% to $313.61 early Thursday afternoon.
Editor's Pick: This article was originally published on July 6, 2017.
What's Smoking Hot On TheStreet
Apple is OK for the time being: For those silently worrying how the Apple (AAPL) iPhone 8 will sell, simmer down -- the tech giant still has several huge advantages. On the hardware side, for instance, the iPhone still feels ahead of the pack, thanks not only to Apple's design skills and the visible features of its hardware, but also to what's under the hood, points out TheStreet's tech columnist Eric Jhonsa. From the looks of things, the iPhone 8 should extend that lead, Jhonsa predicts.
Costco finally scores some good news: After watching its stock crash about 13% inside a month thanks to fears that Amazon (AMZN) and Whole Foods (WFM) will dominate society, Costco (COST) scored a nice win. Costco said same-store sales in June rose 6.5% in June. Canada saw sales up 3.2%, while international sales rose 6.2%.
The numbers should serve as a reminder how resilient Costco's business has been in the face of Amazon's rise.
This is so impressive: In the latest edition to TheStreet's new 'Alpha Rising' series, we sit down with a 23-year old Ford (F) engineer who already holds 15 patents. To be honest, at age 23 yours truly was buried in Excel spreadsheets and working on his biceps in the gym at midnight. Hat tip to this person from the next generation of business rock stars.
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