(Wang Qiuyan/comprehensive foreign report) The most tragic industry leader this year is the global electric vehicle manufacturer Tesla, whose share price has plummeted by nearly 70% so far this year. But the harder the stock price falls, the happier those who are waiting to become Tesla shareholders. Korean retail investors continue to hunt for bottoms, while global market investors are waiting to see whether Tesla will fall below the $100 mark.
Affected by the deterioration of the COVID-19 epidemic in China, Tesla (Tesla) Shanghai plant has extended production cuts. Archyde.com reported that the plant is expected to resume work for only 17 days in January next year, and the Lunar New Year holiday will be extended. This negative impact caused Tesla’s share price to plummet by 11.4% on the 27th, with a cumulative decline of 44% from December to the 27th.
Musk asks Tesla employees not to be affected by stock price
What’s even more shocking is that Tesla’s cumulative decline so far this year has plunged 68%. With Tesla’s CEO Elon Musk’s increasingly exaggerated speeches, and his multiple roles, including Twitter (Twitter) and SpaceX Executing the post of chief executive has caused the outside world to believe that he has no skills and poor management ability.
However, Musk remained calm in the face of Tesla’s stock price plunge and external criticism. According to the US financial media CNBC citing Tesla’s internal letters, “Musk requires employees to maintain long-term excellent work performance without being affected by the sharp drop in the company’s stock price. We must believe that Tesla will be the most valuable company on earth.”
Tesla was sold by most shareholders, and the stock price fell all the way, but there are still a large number of Korean retail investors bravely continuing to undertake. In August, South Korean retail investors held Tesla shares as high as 150 billion U.S. dollars, with a shareholding ratio of as much as 1.6%, making them the seventh largest shareholder. According to statistics from the Korea Securities Depository Administration, December is the third month that Korean retail investors have continued to buy more than Tesla stocks. This year, the amount of Tesla stocks bought is regarding 2.8 billion US dollars.
South Korean retail investors have begun to buy Tesla stocks between 2020 and 2021. Such active buying is related to Korean investors’ preference for investing in high-risk stocks and cryptocurrencies, hoping to find ways to get rich quickly.
The “Korea Herald” reported that the popularity of Tesla’s stock has a great relationship with the depreciation of the Korean won. In September this year, the Korean won fell to a record since the financial tsunami. 1 US dollar can be exchanged for 1,430 won, and now it has returned to around 1,300.
Didn’t understand the fundamentals, big sales by legal persons, big buying by retail investors
However, Tesla’s stock has fallen too much, which has caused dissatisfaction among some Tesla Korean retail investors who continue to hold shares, especially doubting that its investment value is not as good as that of South Korea’s leading technology company Samsung Electronics. Samsung Electronics’ stock price has fallen by regarding 27% this year, significantly smaller than Tesla. The share price fell by 68%.
Viraj Patel, senior strategist at Vanda, a market research firm, said that in the past six months, retail investors have purchased more Tesla shares than in the previous 60 months combined. Fundamentals signal, this is a seller’s paradise.
The market waits to see when Musk will stop doing business
According to FactSet data, the relative strength index (RSI) of Tesla’s stock price has fallen to an all-time low of 16.56, which is in line with the fact that the RSI has fallen below 30 and is in an oversold state. Many investors want to take advantage of Tesla’s share price falling below $100 to buy, expecting a quick rebound.
However, observing from the past few months, Tesla has been oversold many times, but the stock price did not rise rapidly when the RSI rebounded, but continued to weaken. Some market analysts have warned that Tesla’s stock price may not only fall below the $100 mark, but will continue to drop.
UBS analyst Ipek Ozkardeskaya (Ipek Ozkardeskaya) pointed out, “It feels like confidence is gone, and the Tesla fairy tale is suddenly over. Investors want to see how the upcoming recession will affect the demand for electric vehicles. , how competition from other electric car manufacturers will eat up Tesla’s market share, and when Musk will stop doing nothing.”
Original URL of Ling Media:The Tesla fairy tale is over!The stock price plummeted by nearly 70% is not enough for analysts: fear of breaking $100
