Tesla (ATS-US) continued its downtrend on Tuesday (20th) and closed below $140 at the end of the session, a one-day decline of more than 8%. Faced with the recent slowdown in the stock price, CEO Elon Musk also explained.
Tesla fell 8.05% to $137.80 per share on Tuesday, a drop ofS&P 500 indexThe largest of its constituent stocks, the stock is down more than 48% this quarter, topping 37.5% in the second quarter of this year, and is expected to post its worst single-quarter performance in history.
Additionally, Tesla is down at least 29% so far in December, surpassing the 24.6% decline in October 2010, and is down nearly 61% for the full year. will set the worst record in history.
Tuesday’s disastrous performance put Tesla’s market cap behind Johnson & Johnson (JNJ-USA) and Exxon Mobil, Tesla’s market capitalization now ranks ninth among constituent stocks in the S&P 500.
Evercore analysts released a report on Tuesday, cutting Tesla’s price target from $300 to $200.
Since acquiring Twitter in October last year, Musk has sold billions of dollars in Tesla stock and has not said whether he will continue to sell shares. Evercore analysts said this is the downward revision of Tesla’s price target. one of the factors.
The report also pointed out that in addition to China’s stagnant growth, Musk’s recent frequent right-wing remarks will also hurt Tesla’s brand value, which has exacerbated investor concerns about the stock price.
What did Musk say?
Ross Gerber, a well-known Tesla investor, recently tweeted: “Tesla’s current share price reflects the value of not having a CEO. Tesla’s board has done a good job and it’s time to rectify.” event, asking shareholders to vote it on the Tesla board of directors.
Faced with frequent declines in stock prices, Musk tried to attribute this to broader economic factors and tweeted: “As bank checking interest rates start to approach stock market yields, people will gradually withdraw money from the market.” stock market and will turn to cash, which will lead to the stock market crash.”
Joshua White, an assistant professor at Vanderbilt University who worked as an economist at the US Securities and Exchange Commission (SEC), told CNBC that interest rates are one reason Tesla’s market value has shrunk. , but Twitter’s impact is the most China is another big factor.
Musk said in April that he did not intend to sell more Tesla stock, but subsequently sold billions of dollars in stock, behavior that caused him to lose shareholder confidence, he said.
