Have you ever felt freefall?

At first, your body discovers that it has lost gravity, so it alerts your brain, causing severe palpitations and the fear of a knife scratching your fingertips.

Then your consciousness will slowly recover, and you will find that the risk and sense of loss of control gradually prevail over reason, and countless possible consequences will flash in front of your eyes like a horse lantern. Your body will begin to tighten up and look for countermeasures.

But not for long.Bang, the ground is here.。

Of course, if you are just bungee jumping and there is no accident, then congratulations, you will bounce back.

Just last night, Tesla, Inc. brought the leeks to a scary freefall.The bears who once made a large number of Tesla, Inc. suffer for a long time were ecstatic and told each other, as if they had finally waited until the long-awaited spring.

A thrilling roller coaster

Tesla, Inc. shares continued the downward trend of the previous day on Sept. 2, eastern time, falling rapidly after the opening of trading, and even fell by more than 15% at one point around 11:40, the biggest drop in five months.

Then the stock price reached the bottom, the bulls began to take the opportunity to make a bottom, the decline gradually narrowed, the stock price out of a sharp wedge.

As of the close, Tesla, Inc. 's share price was at US $447.37, down 5.83%. The latest market capitalization was US $416.9 billion, US $26 billion less than the previous day.

Before the 4th, Tesla, Inc. 's decline narrowed to 2.49%.

On the face of the newsThe sharp fall in stock prices this time is mainly due to two negative factors.：

1. Tesla, Inc. will sell up to $5 billion in shares.

Tesla, Inc. said on Sept. 1, local time, that he would sell as much as $5 billion of shares. Tesla, Inc. 's filings with the Securities and Exchange Commission show that the shares will be sold at the "market price"from time to time".

However, Tesla, Inc. failed to clearly explain the use of the funds, only vaguely saying that it would be used to "strengthen the balance sheet" and general corporate purposes, disappointing investors.

And after the stock split and then start additional financing, it seems that Tesla, Inc. began to shift the focus of financing to retail investors.

Some analysts believe that this means that institutional investor demand for Tesla, Inc. shares may be "drying up."

two。 The company's largest external shareholder Baillie Gifford reduced its holdings.

Then, on Sept. 2, local time, Tesla, Inc. 's largest external shareholder, Baillie Gifford, the Scottish investment fund that accompanied Tesla, Inc. for seven years, was also revealed to have reduced its stake in Tesla, Inc..

According to documents from the securities and exchange commission (SEC), Baillie Gifford currently holds only 4.25% of Tesla, Inc., down from 6.32%, or 19.284 million shares (calculated after the split).

If calculated on the basis of Tesla, Inc. 's closing price of $498.32 per share on August 31,The total cash amount of Baillie Gifford reached 9.61 billion US dollars.。

However, Baillie Gifford said in a statement that it is still a long-term "believer" of Tesla, Inc., and the reduction is only due to portfolio restrictions.

The sharp rise in Tesla, Inc. 's share price means that we need to reduce our holdings. We intend to remain a shareholder of Tesla, Inc. for many years to come, and we are still very optimistic about the future of the company. If Tesla, Inc. 's share price falls sharply, we will still be very happy to see such an opportunity to increase our positions. "--Baillie Gifford

A pioneer, a dreamer.

Tesla, Inc. is a new car-building force in the United States and a "vanguard" in the market capitalization of new energy vehicles in the world.

The company's share price has more than quintupled in 2020.

Tesla, Inc. shares rose a further 12.57 per cent to $464.339 billion on Aug. 31, 2020 eastern time, as the stock was split at 1:5.

Tesla, Inc. surpassed Visa Inc to become the seventh largest American company by market capitalization on the same day. Today, its market capitalization has surpassed that of all European, American and Japanese automakers, including established giants such as Chrysler, GM and Toyota, as well as supercar manufacturers such as Ferrari.

Musk himself is among the top three richest people in the world with a fortune of $115.4 billion. It can be seen how popular Tesla, Inc. is in the recent US stock market.

Tesla, Inc. was once on the verge of bankruptcy. In fact, from 2007H2 to now, Tesla, Inc. has been losing money, and the loss reached its peak in 2017H2.

Until 2019, Tesla, Inc. recorded a full-year net loss of $862 million.

However, the completion and commissioning of Tesla, Inc. 's Shanghai plant promoted the improvement of Tesla, Inc. 's production capacity and made up for the lack of delivery capacity that had been questioned before.

Subsequently, the localized Model 3 sold well in China, and the company also announced phased results in a range of science and technology fields.

I would like to mention here that although Tesla, Inc. 's "sense of science and technology" is still very online in the Chinese market, due to pricing strategy and other reasons, its first domestic product, Model 3, has made a slight discount in terms of configuration, materials, comfort, follow-up service and so on.

Many consumers still regard Tesla, Inc. Model 3 as a "high-end sports car" whose appearance is fashionable and cool, and its 100km acceleration belongs to the 5-second club.

So,Consumers just need to be happy.。

2020H1, affected by COVID-19 's epidemic, global car sales fell by more than 20% year-on-year to more than 59.6 million units. Tesla, Inc. sold a total of 179000 electric cars worldwide, with a net profit of $104 million, a sharp increase of 125.47 per cent year-on-year.

Until here, investors' expectations of Tesla, Inc. have improved to a certain extent.

Nowadays, when ordinary consumers see Tesla, Inc. 's pure electric vehicles running all over the street, they may think that Tesla, Inc. is the bellwether of the new power of car-building.

But the fact is that new energy vehicles are only a concrete product of Tesla, Inc. 's achievements in many fields.

Analysts at institutions such as Piper Sandler believe Tesla, Inc. will be able to grow into a larger leader and thus have a larger market share in the long run than other competitors trying to break into the electric car market.

In addition to batteries, artificial intelligence, autopilot software, etc., Musk is also chasing brain interfaces, Mars exploration and other "hard-core science fiction", and seems to have some achievements.

In addition to being down-to-earth, people also hope to look up at the starry sky.

The company shows people as a persistent "dreamer", which can be said to be very sexy.

Self-reversal of crowded trading

Therefore, it is not difficult to understand why leeks like Tesla, Inc. so much.

The "investor change index", an index based on investor behavior, rose 1.76 per cent to 4.63 in July, up from 2.1 at the start of the year, according to TD Ameritrade, an online retail securities trading firm, suggesting that the investor structure of US stocks is tilting towards the retail side.

在Among the favorite stocks of retail investors, Tesla, Inc. is among the best.Followed by Pfizer Inc, Apple Inc, Crowdstrike Holdings, Microsoft Corp and Nikolai and so on.

As a result, under the enthusiasm of retail investors and the company's own "coquettish operation", the trading volume of Tesla, Inc. 's shares increased suddenly from August 31st to September 2nd.

Tesla, Inc. 's shares were split into five shares on August 31, and the trading volume soared from 20.08 million on the previous trading day to 120 million at the close of trading on the 31st. The trading volume was also more than 90 million in the next two days.

It can be seen that Tesla, Inc. split stock measures, successfully lowered the investment threshold for retail investors, allowing more investors to enter the market speculation.

In fact, in this process, Tesla, Inc. createdThe self-realization of a rising "logic"Investors believe that the split will push up the share price, while investors who want to enter the market believe that the stock price will rise.

In sharp contrast to the active admission of retail investorsHowever, some institutions are moving their positions to escape Tesla, Inc..。

In addition to this reduction of Baillie Gifford, the Bridge Water Fund has also reduced its holdings of Tesla, Inc. in 2020Q2, with a reduction of 44 per cent.

As of 2019Q4, Tesla, Inc., the Saudi sovereign wealth fund public investment fund (PIF), had reduced its position to about 39000 shares, down 99.5 per cent from about 8.3 million shares held by Q3, and sold almost all of its holdings.

The difference in beliefs between retail investors and institutions has become a buying and selling game between bulls and bears.

So under the joint "efforts" of Tesla, Inc. and his largest external shareholder Baillie Gifford, we see again today that the "logic" of the rise has become less firm-- when the wind turns, stocks are suddenly sold off on a large scale, and the impairment of equity assets held will cause many panic of unknown truth "leeks", so they begin to run away and trample on each other.

Fortunately, there is a group of people who still have a firm belief in Tesla, Inc. 's capacity.Saved the stock price of the day. Otherwise Musk will have to take a few more steps back from the small target.

According to the betting agreement between Tesla, Inc. and Musk, if Musk can lead Tesla, Inc. 's market capitalization to continue to rise, he will be able to get options worth $55 billion in stages. In the meantime, Musk will not receive any cash salary from the company.

The end.

In fact, they have been waiting for a long time since the bears began to bet on the fall of Tesla, Inc..

Of the 36 analysts surveyed by FactSet, a financial information provider, only seven rated Tesla, Inc. 's shares as "buy", while half gave them a neutral rating.

The average target price for all analysts is $261.85, 41.4 per cent lower than the closing price after two consecutive days of losses. This means that 81% of analysts no longer recommend admission.

At present, Tesla, Inc. 's price-to-book ratio is close to 50 times, much higher than the industry average valuation, close to 2015 when the company's momentum and bubble was at its peak.

Although there was a big shock on September 2, the share price of Tesla, Inc. did not completely collapse on the same day, the bulls were still holding up the scene, and the fundamentals that had been bullish were still online.

In the eyes of some consumers, Tesla, Inc. has become synonymous with fashionable, high-performance, high-tech sports cars, and even Tesla, Inc. 's salespeople have openly claimed that Tesla, Inc. is the "technological responsibility" of new energy vehicles.

An analysis by Fortune magazine once pointed out that to justify the valuation, Tesla, Inc. needs to achieve an annual income of $204 billion by 2030, or sell 3.5 million electric vehicles at a price of $58000 each.

Then we might as well calculate an account based on Tesla, Inc. 's performance: half a year has passed and 5% of the time has passed in the time frame from 2020 to 2030, while 2020H1's revenue is $12.021 billion, 5.98% of the revenue task has been completed.

At the current speedIt is still possible for the company to achieve the revenue target set by Fortune.. In particular, brain-computer interfaces, Mars exploration, and autopilot networks, which sound like untouchable aspirations, all seem to be coming true.

This is also consistent with Musk's idea of "thinking about the universe" all along.

If the driving force behind Tesla, Inc. 's rising market value comes from the "leeks" who believe in the beautiful vision he has outlined, so much so thatThis belief can help Tesla, Inc. 's market value enter a circular "acceleration channel".Then keeping the image of "the implementer of the human dream" and continuing to make a substantial profit is the key for Tesla, Inc. to maintain his market capitalization.

Otherwise, as Soros said:The way to gain wealth is to quit the game before the illusion is known to the public.。