Tesla’s shares are having a lousy summer

Sad elon.
Sad elon.
Image: Reuters/Rebecca Cook
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Investors are putting the brakes on Tesla this morning, with shares down more than 10%.

What’s spooking them? The electric carmaker reported a strong quarter yesterday (August 5), but backed off projections it made in May about how many cars it expects to deliver this year. And there are concerns over claims by security researchers that they were able to hack into a Model S’s onboard computer and commandeer its controls.

Zoom out of the stock chart a bit, and you can see the company’s shares have erased all their gains since late May.

But this may just be another awkward, temporary hiccup for the much hyped company. Zoom out a bit further, and you can see that this kind of thing has happened before.

Last year, around this time, Tesla stock tanked because CEO Elon Musk said the company was overvalued. It just recovered all those losses before this episode. There were also all those Tesla’s catching fire in 2013. Quartz’s Steve Levine thinks the entry-level Model 3 marks a crucial point in the company’s development. If Tesla can pull that off, this summer might soon be a distant memory.