Tesla tumbles 17% as electrifying rally loses power

Tesla tumbles 17% as electrifying rally loses power

Tesla's stock tumbled 17 per cent on Wednesday, hitting the brakes on a dramatic rally as a senior executive said the coronavirus outbreak in China would delay deliveries of its Model 3 cars and analysts warned of its high valuation.. Tesla Vice President Tao Lin said on the Weibo social media platform that car deliveries from its new Shanghai plant would be temporarily delayed and that the company planned to restart production on Feb. 10.The $2 billion factory is a key part of Chief Executive Elon Musk's plan to make more than half a million automobiles this year.. Needham analyst Rajvindra Gill, who recommends selling Tesla, warned in a report that Tesla's stock is trading at extreme price-to-earnings multiples compared to many leading technology companies.. Even after Wednesday's drop, Tesla is trading at about 55 times expected 2021 net income, compared to Amazon at 49, Apple at 22 and Alphabet at 23, according to Refinitiv data.. "We've never seen a stock rise that much that fast with such little regard to past fundamentals or track record," Gill wrote.. The coronavirus outbreak has disrupted business across China, with the government there saying that the death toll had reached 490 as of