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When it goes up, it goes straight to the sky, and when it goes down, it almost crashes. This may be the recent portrayal of Tesla's stock price. With the general decline of US technology stocks, Tesla's stock price has plummeted again. So far, the stock price has fallen from the historical high of $900 in January to below $600, and its market value has shrunk significantly. Is the new energy vehicle "bubble" on the verge of bursting? Betting on Bitcoin has gone wrong? With the decline of Tesla's stock price, a series of speculations have emerged.
Tesla's stock price has also entered a "period of adjustment". On the 8th local time, the three major U.S. stock indexes rose and fell, with divergent trends. The Dow Jones Industrial Average, which has a relatively large share of traditional industries, closed up 0.97%, setting a record intraday high, while the Nasdaq, which is dominated by technology stocks, fell 2.41%.
Affected by this, Tesla's stock price could not escape its "bad luck" and started its fifth consecutive day of decline on the same day. As of the close of the day, Tesla's stock price fell 5.84% to US$563, with a market value of US$540.398 billion.
In fact, this kind of plunge and flash crash has been going on for some time. Data shows that Tesla's stock price rose 743% in 2020, ranking fifth among the most valuable companies in the stock market. However, since January 25, when Tesla's stock price and market value broke through the $900 and $850 billion mark respectively, setting a record high since its listing, it has started to fall all the way, and Tesla's market value has shrunk by about $300 billion.
$300 billion is not a small number. In comparison, the world's second largest automaker Toyota currently has a market value of $207.22 billion, while Ford and General Motors have a combined market value of only $129.6 billion. Tesla's shrinking market value has also "dragged down" the wealth of its founder Musk. The Bloomberg Billionaires Index shows that Musk's wealth decreased by $27 billion last week. In January this year, Musk's net worth once rose to $195 billion, surpassing Amazon CEO Bezos to become the world's richest man. Currently, Musk ranks second with assets of $157 billion, while Bezos' net worth is $177 billion.
Beijing Business Daily contacted Tesla about the reasons for the stock price drop and the competition situation, but no response was received as of press time. However, some people also mentioned that Tesla's large investment in Bitcoin is also the reason for its recent stock price volatility.
At the beginning of last month, Tesla announced the purchase of $1.5 billion worth of Bitcoin. As soon as the news came out, the price of Bitcoin rose directly to a historical high, and then exceeded $57,000 for a time. However, Bitcoin has always been turbulent. As U.S. Treasury yields rose and the capital market fell sharply, the decline in Bitcoin prices also led to a decline in Tesla's stock price.
The fluctuation of U.S. Treasury yields has become the key reason for Tesla's stock price fluctuations. The U.S. $1.9 trillion economic stimulus bill has intensified market expectations of inflation, and U.S. Treasury yields have soared, putting pressure on the stock market. The U.S. stock market has seen a double-edged battle, with sector differentiation intensifying. For example, banks and industries have benefited from the resumption of work and economic recovery, while technology stocks have plummeted. As for the reasons for the decline in Tesla's stock price, Cui Dongshu, secretary-general of the China Passenger Car Association, also analyzed to the Beijing Business Daily reporter that it is more due to the fluctuations in the capital market, which also proves that Tesla's stock price has indeed been a bit high in the past period of time.
In addition, Cui Dongshu also mentioned that the future development of the entire new energy vehicle industry has also undergone some adjustments. Data show that Tesla's market share in Europe fell to 13% in 2020, and its sales also fell from 109,000 vehicles in 2019 to nearly 98,000 vehicles in 2020, a decrease of about 10%. Tesla's European sales are currently lagging behind the Volkswagen Group and the Renault-Nissan-Mitsubishi Alliance. At the beginning of this year, Herbert Diess, CEO of the Volkswagen Group, also called out to Musk on the social platform: "I am here to create some influence with the Volkswagen Group. Of course, it is also to win some of your market share."
This also reflects a certain degree of market competition. In the Chinese market, new car-making forces such as Weilai, Ideal, and Xiaopeng are gaining momentum, and the European market is even more crowded with strong competitors. For example, Volkswagen's ID.3, after full delivery in Europe last September, took only one month to quickly win the European electric vehicle monthly sales champion, and continued to rise thereafter. In the US market, Ford has also begun mass delivery of its first pure electric SUV, the Mustang Mach-E, since the beginning of the year.
However, Cui Dongshu believes that Tesla still has an absolute advantage in technology. There are still voices in the market that are bullish on Tesla, such as Cathie Wood, known as the "Queen of the Bull Market", who emphasized: "The new investment research report on Tesla will be released in 1-2 weeks. We believe that the possibility of Tesla winning the largest share of the US self-driving taxi market has increased, so you can imagine that the target price has risen significantly." |
