What a difference a couple of weeks make. After hitting an all-time high in late June, Tesla shares have collapsed 20 percent as of Thursday's close, due to mounting concerns about its sales results, competition and the safety of its cars.
Traders consider a 20 percent decline from an all-time high the technical definition of a bear market move.
The electric car maker's stock fell 5.6 percent Thursday, bringing losses for the week to 14.6 percent.
"Tesla's stock was pushed to ridiculous levels on the notion that the Model 3 would be a slam-dunk success," said Fred Hickey, editor of High Tech Strategist. The company's "$100,000+ models aren't selling as well and are piling up in inventory (the relatively small pool of potential buyers at these prices may be exhausted). This bubble stock is losing air rapidly, as it should."
Multiple Wall Street firms including Goldman Sachs, Bernstein, KeyBanc Capital and Cowen expressed disappointment over Tesla's second-quarter delivery results in notes to clients the last two days.