Source: Finance Association
① Tesla is still down nearly 13% this month, with a year-on-year decline of nearly 30%; ② will release its delivery data for the first quarter at the beginning of next week, and investment banks have frequently lowered their forecasts recently.
Thursday (March 28)$Tesla (TSLA.US)$Shares closed down 2.25% to $175.79 per share.
Although it has been rising for three days, the stock has continued to decline by more than 12% this month and has fallen by more than 29% since the beginning of the year. In contrast to this, the US stock market benchmark --$S&P 500 Index (.SPX.US)$It has risen 3.1% this month, and has already risen by more than 10% in the first quarter of this year.
As of press release, Tesla's market capitalization is about 560 billion US dollars, ranking 12th among US stocks, behind$JPMorgan (JPM.US)$und$Visa (V.US)$, and the gap between Tesla and the other members of the Big Seven is getting wider, even if it is ranked 6th$Meta Platforms (META.US)$The market capitalization is also more than double that of Tesla.
Not surprisingly, the electric car maker will release its first-quarter delivery figures early next week. Recently, investment banks have frequently lowered their forecast figures. Shortly before publication, Morgan Stanley lowered the estimated value of Tesla's Q1 deliveries from 469,400 units to 425,000 units, and the annual figure of 1.98,000 vehicles to 1.954 million units.
As weak demand for electric vehicles is likely to continue for some time, investors don't seem to see enough reason to bet on Tesla's rebound. Nicholas Colas, co-founder of DataTrek Research, said that delivery expectations have been drastically lowered, which has indeed dampened investors' confidence in the company.
There are many reasons for Tesla's poor stock price performance. Colas added that even if the data in Tesla's Q1 earnings report exceeds expectations, it is difficult to drive sentiment, “because valuations are often linked to the company's weakest link. For Tesla at present, this is the automobile business.”
Currently, the biggest cloud looming over Tesla is the slowdown in demand for electric vehicles. At the same time, this leading electric vehicle company is facing increasingly fierce competition from its peers. More importantly, investors' enthusiasm for Tesla has waned drastically, and they are worried that the share price lacks a new catalyst if it wants to rise in the short term.
Ivana Delevska, chief investment officer at SPEAR Invest, said that Tesla's trend already reflects quite a bit of pessimism. “If the company cannot make progress in autonomous driving technology, then it will only continue to struggle in the cooling electric vehicle market.”
Furthermore, Tesla's previous claim that it “wants to become a major player in the field of artificial intelligence” is beginning to be untenable. Outsiders believe that driving a car is still a difficult problem to solve, and experts and analysts expect that it will not soon become a widely adopted technology.
Editor/jayden