Yahoo Finance Tesla takes the spotlight amid stock's woes — What to know in markets Tuesday
Embattled electric carmaker Tesla (TSLA) is expected to hold its annual shareholder meeting on Tuesday, where CEO Elon Musk is expected to lay out the challenges facing his company.
The Mountain View, California-based automaker will webcast the meeting, scheduled to begin at 5:30 p.m., to discuss what has been a rough year for Tesla.
Shares have sunk 36% this year, sharply underperforming the broader market with the S&P 500 (^GSPC) Index jumping 16% in the same time period.
Tesla has been hammered by a multitude of challenges, as concerns over the company’s inability to meet production quotas and weak demand for its Model 3 have drawn out the short sellers that Musk has publicly attacked.
After two consecutive quarters of profitability in the third and fourth quarters of 2018, Tesla swung to a loss during the first quarter as demand dwindled.
Nevertheless, Musk insisted that he expected the company to return to profitability in the second half of 2018, meaning investors will likely focus on any updates to those predictions.
Still, the story might be changing for Tesla. The stock soared 4% on Monday, after logging its best week since October.
While a few analysts have struck a more optimistic tone on Tesla, the stock remains sandbagged by a slew of negative sentiment from Wall Street’s watchers.
According to data compiled by Bloomberg, the bears still outnumber the bulls: Tesla’s stock has 12 Buy ratings, 9 Holds and 15 Sells. The average price target is $272.52, which represents a 28% move higher from Monday’s closing price.
Investors will also watch to see if stocks can extend their recent gains, as markets continue to digest developments in the U.S.’s multi-front trade war. U.S. stocks extended gains Monday, after President Donald Trump decided not to impose tariffs on imports from Mexico, momentarily easing widespread trade fears.
The S&P 500 (^GSPC) ended up 0.47%, or 13.39 points. The index’s five-session rally marks the longest winning streak since its 8 consecutive sessions of gains ending April 8.
Meanwhile, the Dow (^DJI) rose 0.3%, or 78.74 points, and was up for a sixth straight session. The Nasdaq (^IXIC) rose 1.05%, or 81.07 points.
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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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