[CNMO] At a time when countries are working hard to reduce carbon emissions to maintain global climate stability, new energy vehicles have ushered in an excellent golden opportunity for development. With this opportunity, Tesla has achieved rapid development in recent years and h

【CNMO】At a time when all countries are working hard to reduce carbon emissions to maintain global climate stability, new energy vehicles have ushered in an excellent golden opportunity for development. With this opportunity, Tesla has achieved rapid development in recent years and has quickly become the leader of new energy vehicles in the world. Its market value once exceeded the trillion US dollars mark, becoming the world's first car company with a market value of more than trillion US dollars.

Tesla

However, the good times did not last long. Although Tesla still has good sales growth in recent years, its stock price has experienced a significant decline in recent days. Data shows that on Friday (October 7), Tesla's stock price closed down more than 6%, closing at $223.07 per share, falling to its lowest in three months. In the past five trading days, the leading electric vehicle company has fallen by about 16%, down from the previous $265 per share to $223 per share.

Tesla's current stock price

Although recently, due to the release of Fed interest rate hikes and the release of many September economic data, US stock has been under a lot of pressure. However, overall, thanks to the sharp rise in the previous two days, U.S. stocks recorded a slight increase this week. In contrast, Tesla's weekly decline of 16% was the worst single-week performance since March 2020. So, what happened to this world-renowned "Internet celebrity car company" in recent times that caused its stock price to fall sharply against the market?

delivery data is lower than expected

For a company, there are indeed many factors that affect the stock price, but for Tesla, which is in the growth stage, its sales performance can be said to be an important indicator for investors to determine whether the company is operating well. Tesla's third-quarter delivery data disclosed in early October obviously did not meet investors' expectations.

Tesla's third quarter production and sales data for 2022

According to Tesla's third quarter production and sales report, it delivered a total of 343,830 electric vehicles in the quarter, of which about 325,200 were delivered in Model 3 and Model Y, accounting for nearly 95%. It seems that the average monthly delivery volume of more than 100,000 vehicles is not much, but this figure is still lower than the previously estimated 357,900 vehicles, which also caused its stock price to fall by 8% on October 2 on the day of the announcement.

Although Tesla's new super factory production in Austin, Texas, USA and Berlin, Germany has achieved a significant increase, Tesla's Shanghai super factory is still the main force of Tesla's production capacity. However, due to the domestic power shortage and the epidemic in the third quarter, the production capacity of Shanghai factories has also been affected to a certain extent.

Tesla Super Factory

The opposite of Tesla is that its domestic competitor BYD still performs strongly. According to the September sales data released by BYD, its sales in September exceeded 200,000 units, reaching 200,973 units, an increase of 154.3% year-on-year compared with the 79,000 units in September last year. Its monthly sales of 200,000 are almost twice that of Tesla, and it can be said to be the real "selling number one" of new energy vehicles in the world. In addition, BYD has recently begun to expand overseas. With its leading three-electric technology, it has entered many countries one after another, which is definitely not good news for Tesla.

Musk's grudges with Twitter

In addition to Tesla's own performance not as expected, Musk, as Tesla's CEO, also has an important impact on Tesla's stock price. As the world's richest man today, Musk can be said to be the first minister of Tesla's rapid development in recent years. However, as the saying goes, "Success is Xiao He, failure is Xiao He." Musk's recent remarks, known as "Ma Da Mouth", have also made Tesla "very hurtful".

Musk and Twitter

Previously, Musk publicly stated that he planned to acquire the social APP Twitter at a price of $54.20 per share, and the acquisition will cost more than $44 billion. Once the news was announced, Tesla's stock price plummeted , because many investors were worried that in order to raise funds, Musk would inevitably sell his Tesla shares to cash out. And as people expected, Musk then embarked on a journey of cashing out. Statistics show that this year alone, Musk has sold more than $15 billion in Tesla stock.He sold $8.5 billion in stock in April and another $6.9 billion in August. The reason is mainly to raise funds for the acquisition of Twitter.

But shortly after Musk announced that he would acquire Twitter, he seemed to regret it again. He attacked the issue of the existence of a large number of "false accounts" on Twitter and announced the suspension of transactions in July. However, Twitter immediately sued him in court, demanding that he fulfill his previous acquisition promise. As the trial began, Musk changed his mind on October 4. Twitter issued an announcement saying that Musk's lawyers wrote to the company saying that they agreed to complete the acquisition under the agreement signed on April 25, that is, to deliver the business up to $44 billion at $54.2 per share.

Musk

Musk's reversal in the acquisition of Twitter case has once again affected Tesla's stock price. It is reported that although Musk has cashed out many times before by taking advantage of the acquisition of Twitter, the funds he currently has not been able to complete the delivery. In order to buy Twitter, Musk will also need to sell Tesla stock worth $2 billion to $7 billion. Affected by this, Tesla's stock price fell by another 3.46% on the same day. The main reason for this decline was that it was affected by Musk's possible selling of stocks.

Price-to-earnings ratio is relatively high, and there may still be bubbles

Although Tesla's stock has fallen by more than 34% since Musk announced his acquisition of Twitter, its stock price is still at a historical high. Judging from the price-to-earnings ratio (TTM) used to estimate the investment value of stocks, Tesla's current price-to-earnings ratio is 80.65, which means that based on the current profit, it takes 80.65 years to buy a Tesla stock before it can fully recover its capital. This is not only far higher than traditional car companies such as Ford and Volkswagen, but also much higher than the average 16-fold price-to-earnings ratio of S&P 500 index , and even higher than some technology stocks represented by Apple . Although considering that its profits may still have a lot of room for growth in the later period, the current valuation still discourages some potential investors.

Tesla's price-to-earnings ratio

In addition, the current decline in the global economy has also made investors worry about whether Tesla's previous sales forecasts will be affected by the overall environment. Due to poor economic performance, many consumers have slowed the purchase of high-priced goods, including cars, which may also have an adverse impact on Tesla's future sales.

Some professional investors have also expressed concerns about Tesla's future stock price. Catherine Faddis, chief investment officer of Grace Capital, pointed out: "When other high-growth, high-valuation stocks suffer losses, will Tesla's stock maintain a halo effect and continue to be strong? So far this year." In the eyes of some professional investors, there is still some water in the current Tesla stock price.

is written at the end

Overall, Tesla's own strength and Musk's personal charm are certainly unquestionable. Tesla is still the world's highest market value car company. However, due to the rapid rise of Chinese new energy vehicle companies such as BYD, Tesla is also facing more fierce competition. In addition, the transaction between Musk and Twitter has also caused Tesla's stock price to suffer a "unpredictable disaster". With the addition of various factors, the recent serious decline in Tesla's stock price is expected.