Tesla Slides 5%, Hits Three-Month Low as Recall Rumors Dismissed

Tesla (TSLA), the upstart automaker that once could do no wrong, now can do no right.

Shares of Tesla have dropped today, with CNBC attributing the decline to rumors of a recall, according to Briefing.com. The rumors have since been dismissed as just that, but Tesla’s stock hasn’t recovered much this afternoon. It’s down 5.2% at $137.14 at 2:16 p.m., the cheapest since Aug. 7, when it closed at $134.23. That’s what happens when sentiment turns on a market darling.

Also of interest–but perhaps to only me–is what’s happening with Tesla’s volatility, or its average annualized price swings. Tesla’s 10-day volatility has surged to 113.23%, up from 47.29% on Oct. 23. Its implied volatility–that is, the amount of volatility implied by Tesla’s options–has dropped to 55.92% from 82% during the same period.

The takeaway: Investors are expecting Tesla’s shares to be less volatile in the days ahead now that its results are past.