Tesla in reverse: Second-worst day for stock ever

Citron Research’s Andrew Left discusses the rapid rise and fall of Tesla’s stock price and where he believes the stock will level off as well as the valuation of Peloton.

Tesla investors tempered their thirst for the stock on Wednesday after a red hot run.

Shares tumbled over 17 percent, the second-worst day ever for the stock, as tracked by Dow Jones Market Data Group.

Fueling the drop, Tesla executive Tao Lin indicated the coronavirus may delay deliveries out of the Shanghai, China, factory, as reported by Reuters.

Ticker	Security	Last	Change	Change %
TSLA	TESLA INC.	357.09	+11.93	+3.46%

Even with the pullback, which was deeper intraday, shares have still advanced over 112 percent this year pounding the short-sellers, traders who are betting shares will drop. The shorts, as reported by FOX Business, have lost $11.5 billion this year alone.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Tuesday shares rallied to a record high, briefly midsession, crossing the $900-per-share level amid heavy volume.

TESLA NAYSAYERS STILL BETTING AGAINST ELON MUSK DESPITE $11.5B LOSS

Andrew Left of Citron Research, who is a former short, tweeted this week that Elon Musk himself would be shorting amid the run-up.

Speaking to FOX Business' Stuart Varney, Left explained.

"When you hear about computerized trading and algorithms, I think that is what you are seeing with the stock if you look at the volume," he said. "Elon Musk is a master of artificial intelligence, he understands artificial intelligence, so when your stock is being bid up artificially, he would get that."

Other firms are in reality check mode on Tesla as well.

Canaccord Genuity cut the stock to hold on coronavirus worries; Morgan Stanley, which rates shares a sell, says valuation is out of whack, more like tech than autos; and New Street Research, which is also neutral on the stock, says the short-squeeze could be winding down.