Tesla (TSLA-US) continued its downward trend on Tuesday (20th) and closed below $140 at the end of the session, a one-day drop of more than 8%. Faced with the recent sluggish stock price, CEO Elon Musk also explained.
Tesla fell 8.05% to $137.80 per share on Tuesday, a drop ofS&P 500 IndexThe largest among the constituent stocks, the stock fell by more than 48% this quarter, surpassing the 37.5% in Q2 this year, and is expected to write the worst single-quarter performance in history.
In addition, Tesla has fallen by at least 29% so far in December, surpassing the 24.6% decline in October 2010, and fell by nearly 61% for the whole year. Whether it is a single month or a full-year performance, it will set the worst record in history.
Tuesday’s disastrous performance put Tesla’s market cap behind Johnson & Johnson (JNJ-US) and Exxon Mobil, Tesla’s market capitalization now ranks ninth among the S&P 500 constituent stocks.
Evercore analysts released a report on Tuesday, slashing Tesla’s target price from $300 to $200.
Since the acquisition of Twitter in October last year, Musk has sold billions of dollars in Tesla shares, and has not stated whether he will continue to sell shares. Evercore analysts said that this is the downward revision of Tesla’s target price. one of the factors.
The report also pointed out that in addition to China’s stagnant growth, Musk’s recent frequent right-wing remarks will also damage Tesla’s brand value, which has exacerbated investors’ concerns regarding the stock price.
What did Musk say?
Ross Gerber, a well-known Tesla investor, recently tweeted: “Tesla’s current stock price reflects the value of having no CEO. Tesla’s board of directors has done a good job, and it is time to rectify.” Gerber also initiated a An informal event, advocating for shareholders to vote him on Tesla’s board.
In the face of frequent declines in stock prices, Musk tried to attribute this to overall economic factors. He tweeted: “When bank current account interest rates start to approach stock market returns, people will gradually withdraw money from the stock market and turn to cash, which will lead to The stock market fell.”
Joshua White, an assistant professor at Vanderbilt University who worked as an economist at the U.S. Securities and Exchange Commission (SEC), told CNBC that interest rates are one of the reasons why Tesla’s market value has shrunk, but the impact of Twitter is the most important. China is another big factor.
Musk said in April that he did not intend to sell more Tesla shares, but subsequently sold billions of dollars in stock, a behavior that caused him to lose the trust of shareholders, he said.
