Tesla shares were down over $24, or 7.6%, on Monday to $295 and dropped by over $81 or almost 22% from December 13 to the 24th. Musk tweets made investors nervousMusk’s Saturday tweets may have just been a good reminder to potential buyers that the full $7,500 Federal tax credit expires on December 31, but investors didn't take it that way on Monday. The first tweet reminding people that the $7,500 tax credit will be halved to $3,750 starting with January 1 deliveries was appropriate. While I’m not an accountant, it would seem to me that these would be March quarter sales and not fall in the December quarter. The deposit shrinkage may not occur until the March or even the June quarter, after which the Federal tax credit falls to $1,875 starting on July 1, 2019.

Source: Forbes December 26, 2018 17:48 UTC