On Tuesday, shares in the electric vehicle maker fell to a new 52 week low, closing around $138 per share, or 8% lower.
The CEO blamed the price on macroeconomic factors.
The value of having no CEO is reflected in the stock price of the company. Tsla, time for a shake up. A campaign has been launched to get fellow shareholders to vote to appoint him to the board.
As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed, people will increasingly move their money out of stocks and into cash.
Elon Musk speaks during a press conference at SpaceX's Starbase facility near Boca Chica Village in South Texas on February 10, 2022.Since Musk announced his plans to buy the social networking site, the stock of the electric car maker has plummeted. Since that day, Ford's and GM's shares are both down. The S&P 500 is lower.
Musk has been stirring controversy as the new owner and CEO ofTwitter, the social media giant which he acquired in a leveraged buyout in late October, and is also the CEO of a major defense contractor.
Musk sold billions of dollars of his holdings in order to finance theTwitter deal
He told employees that he sold the shares to save the business, but later reversed his decision to cut more than half of the staff.
While Musk has been focused on his new role as "Chief Twit" since late October,Tesla has been offering discounts and incentives to sell cars in China, where it operates a major factory in Shanghai
Those are some of the challenges that led Evercore ISI to reduce their price targets on Tuesday.
In a note, the analysts at Mizuho Securities said that they see potential weakness in the sales of the electric car maker as a result of macroeconomic factors. New electric vehicle tax credits in the US could "accelerate demand" domestically according to the firm. There are EV credits in China that are due to expire. The firm has a buy rating on the stock.
Joshua White, who used to work as an economist for the U.S. Securities and Exchange Commission, told CNBC that only a small part of the drop in the value ofTesla can be attributed to interest rates. One of the important components is the overhang on social media. China is a large part. We don't know if China will be open all the way and there is supply and demand pressure because of the increase in covid cases.
When Musk said in April that he didn't plan to sell more of his shares, shareholders may have lost faith in him.
He seems to sell equity in large blocks, saying 'I'm done and I'm not selling anymore' Talk costs less than that. He sold more shares after saying that. If you keep saying that, investors think he's not done. They won't be confident that the price will bounce back.
All Rights Reserved © 2024
