Tesla shares closed down 4% Tuesday, at $US267.88.
The dip comes after more than three months of steady gains, minus the volatility that has characterised Tesla’s stock price for the second half of 2014.
Since bottoming out at $US185 per share on March 27, the stock has rebounded big time, ended last week at $US280.
We’re not really sure exactly what triggered Tuesday’s selloff.
However, Deutsche Bank analyst Rod Lache published a note Tuesday downgrading Tesla from “buy” to “hold.” Deutsche Bank upped its target price t0 $US280 from $US245, but the Lache wrote that value of its Tesla future potential has already been factored into the current price.
“And we believe that TSLA could become a dominant player,” he wrote. “But at this point, Tesla’s shares appear to already reflect this opportunity.”