[Prize Question] Tesla's market value has shrunk by more than half. What are the fundamental changes? Can Musk's dream of surpassing Apple come true?

Market Express

On December 13, EST, the US consumer price index (CPI) for November, which was announced before the market, slowed beyond expectations. The three major US stock indices collectively closed higher overnight, but Tesla bucked the trend and fell more than 4%. In a liquid market in 2020 and 2021, investors have an insatiable interest in electric vehicles. Tesla's stock price increased by more than 1000% in two years, driving Musk to become the richest man in the world in January 2021. Currently, Tesla's market capitalization has shrunk by more than half from its high point during the year, and Musk's dream of “Tesla's market capitalization exceeding the sum of Apple and Saudi Aramco” at the third quarter results meeting is getting farther away. Musk also recently lost his position as the richest person in the world.

Market focus

As a hot stock that has received a lot of attention, news related to Tesla is constantly piling up. Hot Girls has compiled a few recent hot news that the market is most concerned about for reference.

Tesla price reduction promotion, delivery time drastically shortened

Against the backdrop of new energy subsidies about to decline, Tesla drastically adjusted prices on October 24, 2022, and introduced an insurance subsidy program on November 8 to increase sales and absorb production capacity. In addition, Tesla has also adjusted delivery times, and delivery times for all models have been drastically shortened. Some investors believe that Tesla's price cuts are a “downsizing attack” for car companies, and that they can gain more market share; however, there are also investors who believe that Tesla's demand is no longer strong.

Tesla continues to have blood transfusions twitter

On November 18, Musk once again reduced his Tesla stock holdings. Musk has reduced his Tesla stock holdings three times in April, August, and November of this year, cashed out at least about $19.4 billion, and bought Twitter at a price of 44 billion US dollars. According to media reports, after buying Twitter, Musk has mobilized “foreign aid” Twitter from executives of its companies such as Space X and Tesla. People familiar with the matter say that several banks are considering providing Musk with new margin loans secured by Tesla shares to replace some of Twitter's high-interest debts. Furthermore, Tesla investors are also very worried that Twitter will consume too much of Musk's energy.

The first batch of Semi was delivered or became the next hot product

On December 1, Tesla's first batch of 8-class electric semi-trailers were delivered to Pepsi. The Semi far surpassed existing diesel vehicles in terms of performance and safety.

Sales increased dramatically in November

On December 8, the Passenger Federation announced that Tesla's wholesale sales volume in China in November was 100,291 units, and 71,704 units in October. The same period last year was 52,859 units, up nearly 40% from the previous year, up nearly 40% from the previous year, and up nearly 90% from the previous year.

Institutional research

In the past three months, a total of 29 analysts rated Tesla. 65.52% of analysts gave a “buy” rating, with an average target price of 305.5 US dollars. Currently, Tesla's stock price is far from the target price. Is there an opportunity to buy? Let's see what the analysts say ~

Bernstein analyst Toni Sacconaghi believes that due to increasingly intense competition for electric vehicles, Tesla's “narrow” product line and high pricing, and the weakening global economy, demand seems to be increasingly becoming a problem facing Tesla. The demand problem is likely to continue until 2023, depress Tesla's profit margins, and give Tesla a “sell” rating, with a target price of $150.

Citigroup analyst Itay Michaelley believes Tesla's valuation is more balanced after the sell-off, and that the company's strong competitive advantage in the electric vehicle market will help it survive the downturn.

Morgan Stanley's Adam Jonas said: In an environment of economic slowdown, we think Tesla's 'competitive gap' may widen, especially as electric vehicle prices shift from inflation to deflation.

Prize-winning questions

The biggest names in the Futubull Community, Tesla's market value has shrunk by more than half, yet most analysts are still bullish. What do you think its real value is? What is the logic behind the recent decline?

Post your opinion at the Futubull Community and bring along #特斯拉投研 content tags andStock codeIf you participate in the event, you will receive 188 points for high-quality reviews. Come and participate!

1M Views