Posted on 12/15/2022 9:52:15 AM PST by SeekAndFind
Tesla is completely lost on Wall Street.
The electric vehicle manufacturer is having a dark year in the stock market. And those difficulties worsened on Dec. 13 with another sharp drop in the stock price of almost 4%.
In all, the Tesla stock lost has lost 54.2% of its value in 2022, translating into a drop in market capitalization of nearly $600 billion. Tesla (TSLA) – is down 60%, compared to its all-time high reached in November 2021.
Most worryingly, on Dec. 13, shares of the Model Y maker were down while the broader market was up. This stock market debacle is now causing a heated debate within the Tesla community, where fans and individual investors are divided, as they see their investments melt away day by day.
“$TSLA is now down -61.2% from its all-time high in Nov 2021, officially making this the largest drawdown in $TSLA stock history,” Sawyer Merritt, who describes himself as Tesla investor, posted on Twitter on Dec. 13. “Conversely, $TSLA shares are trading at their cheapest-level ever (from a forward earnings perspective).”
For Leo KoGuan, one of Tesla’s largest individual shareholders, the current fall is not explained by the fundamentals of the company, but more by external factors.
“No longer about fundamental of Tesla but smart and powerful negative poison gazing Tesla,” KoGuan tweeted on Dec. 13. “We are shareholders are accidental war casualties. The board is established to protect SH. The board members are smart, hopefully they will perform shock therapy to resuscitate stock price.”
Gary Black, another very vocal Tesla shareholder, believes that one such external factor is Tesla’s neglect by Elon Musk. This abandonment is due to the fact that the billionaire is focused on revamping the social network Twitter, which he acquired at a cost of $44 billion.
Since the finalization of the deal on Oct. 27, the serial entrepreneur has only talked about Twitter on a daily basis. He has also become very political and now sees himself as a vindicator.
Given that the old Twitter team had sanctioned the conservatives, Musk made it his mission to rebalance things in favor of the Republicans, in the name of free speech. But this approach frightened advertisers. Musk also notably attacked Apple (AAPL) – . Many experts and Tesla fans believe that these clashes are now causing damage to the Tesla brand.
“I have utmost respect for @elonmusk as a manager, leader, and visionary,” Black said on Dec. 13. “Just wish he’d hire someone to fix Twitter and focus on $TSLA as CEO with all its opportunities and challenges and which could be a $3T market cap company in 5 years.”
Faced with disillusioned investors, Musk has just made a vigorous defense of Tesla, intended to appease their anger and frustration.
“Most of @elonmusk’s net worth is in $TSLA and he doesn’t seem worried. That’s because he knows Tesla is going to be ok,” one Twitter user posted on Dec. 13.
“Tesla will be great long-term,” the billionaire commented. “But doesn’t control macroeconomic tides.”
This defense is in line with his statements a few days earlier.
“Macro conditions are difficult: energy in Europe, real estate in China & crazy Fed rates in USA,” Musk said on Dec. 8.
Musk’s analysis seems to be shared by tech analyst Pierre Ferragu, who believes that Tesla’s fundamentals are solid and therefore cannot explain the stock’s fall. For Ferragu, the electric vehicle manufacturer does not have a demand problem and should continue to dominate its rivals in the long term.
“Tesla is progressively reducing prices to boost demand and absorb capacity growth. It has the cost trajectory to do so without hurting gross margins: Subsidies in the US, localized production in Europe, two giga factories ramping, absorbing fixed costs,” Ferragu said.
But for individual investors, the only way to halt Tesla’s stock slide is with a big development, which could come with the announcement of a stock buyback plan or a positive update on Q4 vehicle delivery targets.
“If the BOD of tesla made an announcement on what’s happening with tesla leadership. Someone should be interm CEO. The stock decline would end. It’s that simple. @MartinViecha $tsla,” Tesla’s investor Ross Gerber tweeted at the company.
BOD stands for board of directors.
Looks like a buying opportunity due to the absurdity of the “external factors.”
There is a big push on hydrogen, that I’m reading on technology pages. He is usually ahead of the game of most insiders, so he may have decided that lithium-ion cars have passed their peak and he is recalibrating.
Articles that quote what “one shareholder said” or “one twitter user said” are not exactly reliable sources of investment information.
I suspect that Musk has offended the Blackrocks of the world, and they’re carrying out angry vengeance on Tesla shares. This can go on for quite a while.
This guy is competing with Trump for Most Impulsive, Inexplicably Self-Sestructive Egomaniac Award. A Very Major Award. Issued by me as a digital NFT card for the low, low price of $99. Visa/MC accepted.
Clearly being targeted by Blackrock, Vanguard et al on WEF orders.
Silly.
It's not like Tesla quit making EV's and powerwalls and selling carbon credits and such that people interested in so-called ESG ought to still ❤️ Tesla over. Anything labeled "ESG" means it's full bore Dim supporter or it's not "ESG".
Adherence to Leftist Dogma has replaced Market Cap as Global Investor's most important KPI.
Wealth is just an expression of political influence.
TSLA price seems to be stabilizing around here, 157/158ish, just my opinion. It has not traded well of late, going down on market-down days and down on market-up days. Now it’s acting stable on a big whack down day. Just an observation, if you like the stock, I’d be nibbling long. The concern is if there is an end of year fire sale that takes it down 10-20 points in an instant. C’est la vie.
I have no doubt that’s part of it.
Also all the liberals who want to buy Teslas because it was “green” will look elsewhere for green, ‘cause Musk has become a republican. So there will probably be a hit in sales.
The question is this : Who on earth can afford a Tesla?
How large is its market among car buyers?
I am quite well off financially, but I’m not going to spend more than $35,000 on ANY car.
I live in a fairly well-off area in No Cali, and I can tell you the place is lousy w/Teslas. I certainly recognize my area is
bubbly in that respect.
$35K is not a lot for a car when F-150’s are upwards of $50K and $60K and can get to $80K with trinkets. Drive by the local elem school (and you can grow old and die in the traffic) at the wrong time and it looks like the German high command with the Porsche SUVs lined up to pick up or drop off the kidlets. Not a single cheap car in line, Teslas, Tahoes, Porsche and AUDI SUVs. Cheapest cars are minivans, and I have not looked, but I suspect those are $50K cars. They are all nearly brand new, that I can tell you. There are no, none, zero ratted out or even used Altimas and Camrys.
General Motors is down 44% from January. Where is the context?
Ford in down 48% from January 14.
These are stupid clown articles.
Well that’s the whole problem. Being a Democrat these days means having no regard of context whatsoever. I imagine much of it though is willful.
Elon Musk sold off another 22 million shares in the EV manufacturer this week, according to filings with the Securities and Exchange Commission. The sale generated $3.6 billion in cash — and it follows a series of trades earlier this year, collectively netting him about $40 billion.
...The Twitter nightmare continues as Musk uses Tesla as his own ATM machine to keep funding the red ink at Twitter which gets worse by the day as more advertisers flee the platform with controversy increasing driven by Musk,” said Wedbush analyst Dan Ives. “When does it end?”
...Some Tesla investors, such as Ives, fear that Musk is not only distracted by his Twitter trouble but also that he will continue selling off stock in the automaker to address the financial headaches he now faces.
...For one thing, he will have to cover about $1 billion annually in interest on the loans that financed the $44 billion Twitter purchase. All told, Musk borrowed about $13 billion, including a $3 billion unsecured loan carrying a hefty 11.75% interest rate, according to Bloomberg. The news service this month reported that Musk may face pressure to provide margin loans to Morgan Stanley and other lenders. That could help him lower some of his borrowing costs.
....But, even then, servicing his debt is expected to cost more than Twitter is currently generating due to lost advertising revenues.
....Separately, tracking service TrueCar reported a sharp decline in consideration of Tesla products by potential EV buyers in the U.S. since mid-year.
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