Ashares of the American company Tesla are headed for the second monthly, quarterly and annual decline during its existence. They’ve cleared 11 percent in just the past year and are 44 percent cheaper since the beginning of December. According to analysts, the main reason for this is the fact that Tesla will face increased competition manufacturing problems in the US and abroad. And so it is, if Tesla Elon Musk inspires and takes a lot of time Twitter company, which he bought in the fall.
“Musk has lost credibility in the investment community,” Wedbush financial analyst Dan Ives told clients last week. There are also problems with broken promises Musk has made to investors. When Musk has sold Tesla shares in the past, he has repeatedly said that he will never sell them again. But he broke it right away. “Tesla is cutting prices at the same time and there are a lot of unsold cars in the world. From a management point of view, Musk could be credited with being behind the wheel of the sp,” Ives added.
The sale of Tesla stock accelerated on Tuesday as investors began to get rid of them en masse. The turnover itself bears witness to this, which was more than double the average. Shares in the Tesla company were therefore ranked behind shares in American company Meta Platforms, which owns Facebook, whose shares are performing worst this year among the most valuable technology companies.
Musk has a large percentage of his wealth mostly in Tesla stock and related financial derivatives, so the decline in the company’s stock price has a significant effect on Musk not being the richest hunter in the world. In mid-December, he was nominated to this position by French businessman Bernard Arnault on the Bloomberg agency’s ebcs and Forbes magazine.
The sharp decline in Tesla’s shares was preceded by a series of insensitive media articles, most recently in the business newspaper The Wall Street Journal (WSJ). The paper on Monday, citing his sources, said Tesla would extend the original eight-day work suspension at its Anghaya plant due to new cases of coronavirus infection among employees. The Anghaji factory outlet will reopen in January, but only for 17 days, Reuters later reported on Tuesday. Tesla has never had such a long break in production.
“It’s the latest in the first series that deserves caution,” Vital Knowledge Media analyst Adam Crisafulli commented on insights into the part-time production of electric cars in the city. He pointed out that Tesla last week offered a $7,500 discount on the purchase of its two most popular models to support demand. That’s double what Tesla was charging this month. Even non-competitors like NIO are facing production problems due to new cases of covid-19. He also dreamed of deepening production and sales.
Tesla shares hit a record high last November when they topped $400 apiece. In ter their price has dropped to around $109. Tesla shares have therefore lost about 73% from their all-time high and are down 69% since the beginning of this year alone. This is more than double the decline on the Nasdaq Composite Index, which includes many companies in the technology sector. Among competing US automakers, Ford Motor stock is down 46% this year and General Motors stock is down 43%.
Since 2010, when Tesla shares began trading on the stock exchange, their price has fallen only once – in 2011, it was 11%. When Tesla shares were at their peak, the company’s value did not exceed 1.2 trillion dollars (27.3 trillion kroner), or about 352 billion dollars.
American economist Paul Krugman, in his editorial in the New York Times on Tuesday, pointed out that those who bought bitcoin last November, when the price of this cryptocurrency was at its highest, have since then lost roughly the same percentage of those who bought Tesla shares. “Eventually, Tesla and Bitcoin may have more in common than you think,” Krugman wrote in an article on the topic of corporate information capabilities.
According to analysts, whether and how quickly Tesla’s shares recover will depend on what the company announces about the economy in the near future. As a result, Celoron announced Tesla in January. Analyst Ives has this year’s price target for Tesla shares slightly above $125 each, though he rated the company and its outlook very favorably in January. At the time, Ron was priced at $1400 per piece.
