Tesla's stock price has been falling endlessly, and the outlook is uncertain and challenging.

(Reuters)

In 2022, the market value will shrink by 70%, Tesla's halo will no longer be

[Reporter Li Qiwen/Comprehensive Report] The stock price of Tesla (Tesla), a major American electric vehicle manufacturer, reached a record high of US$409.97 in November 2021, driving Tesla's market value to break through US$1.3 trillion (approximately NT$40 trillion) at that time. CEO Elon Musk's net worth has also risen accordingly, and he once squeezed out Amazon (Amazon) founder Jeff Bezos (Jeff Bezos) to become the world's richest man.

However, the good times don’t last long. In 2022, Tesla’s stock price will face headwinds, with a drop of nearly 70%. At the end of last year, the lowest point fell to 109.1 US dollars. 350 billion US dollars (approximately NT$10 trillion), and fell out of the list of the top 10 listed companies in the United States. Why did Tesla fall from the popular star technology stock to the altar?

I am afraid that it is inseparable from Musk's words and deeds.

Please read on...

In 2021, Tesla's stock price will soar, and Musk will surpass Bezos to become the world's richest man.

Musk is on the left and Bezos is on the right.

(AFP)

U.S.-China decoupling, market competition slows Tesla demand

Automobile sales have always been regarded as durable goods, coupled with the high price of Tesla, under the general environment of global economic recession and high inflation in 2022, consumers will save money, and the purchase of non-essentials will naturally decrease. followed by lowering.

Judging from the data, Tesla's market share in the electric vehicle market has also declined significantly, from 20.2% in 2021 to 16% in 2022, while the second-ranked Chinese BYD (BYD) has already surpassed the market share. 12.1%, closely following Tesla. Among them, the biggest variable may be the deterioration of US-China relations, which may have an impact on Tesla beyond Musk’s original expectations.

Since China is Tesla's largest car market, Musk has said that he will not withdraw from the Chinese market. However, China's active support of the local electric vehicle industry and the beginning of restrictions on Tesla's sales are all for Tesla's future sales prospects in China. Adding more variables, whether Tesla can maintain its sales leadership in the Chinese market in the future has become the focus of attention.

In order to maintain sales in a highly competitive market, Tesla has repeatedly cut prices in China. Some analysts pointed out that this means that Tesla has demand problems, and the price cuts may continue into this year. will also be reduced.

The rise of China's electric vehicles threatens Tesla's position in the Chinese market.

(Bloomberg)

Controversy continues over Musk's takeover of Twitter

Shareholders point the finger at Musk for the headwinds facing Tesla’s operations and stock price since 2022. In April last year, Musk announced the acquisition of the social platform Twitter (Twitter) for US$44 billion (approximately NT$1.3 trillion). Selling Tesla shares in his hands has exacerbated investors' concerns when Tesla's demand is slowing down. Some people think that Musk's $44 billion purchase of Twitter is too expensive, and that his decision-making is too hasty and impulsive .

After taking over Twitter, Musk launched a series of layoffs on the grounds of saving expenses. He was sued by the landlord for arrears of Twitter office rent, and even considered not paying thousands of employees. Not only that, Musk has also published many times Controversial remarks, such as using far-right terms to attack the Democratic Party and progressives in the United States, also expressed their stance on sensitive geopolitical issues such as the Taiwan Strait and the war between Russia and Ukraine.

A few days ago, it was revealed that the Twitter accounts of several foreign media reporters were suddenly banned. Musk was believed to be abusing his own privileges to censor the news media. The out-of-control behavior has already seriously damaged Tesla's image.

After Musk bought Twitter, his actions and remarks caused a lot of controversy.

(AFP)

Every time the Twitter controversy appears, Tesla's stock price falls.

Tesla thrived during a period of low interest rates and economic prosperity, allowing it to gain enough loyalty and followers in the early days of the electric vehicle industry to be regarded as a pioneer company and an indicator of electric vehicles. Tesla, known as the world's electric vehicle hegemony, will be one of the worst-performing stocks among major automakers and the technology industry in 2022. Tesla's stock price will fall almost every time there is a controversy on Twitter. Continue to break the bottom.

On the first trading day of the new year (January 3), Tesla announced that its 2022 full-year delivery volume was lower than its original target, and Tesla's stock price fell another 12% in a single day.

In order to save market confidence and appease shareholders, Musk recently promised not to sell Tesla shares within 2 years, but this statement seems to be unable to make investors pay, and Tesla's decline may not see the end yet.

Tesla is one of the worst performers among global technology stocks in 2022.

(AFP)

Empty or more?

Tesla heading for global attention

In 2022, when the international situation and economic turmoil are experienced, Tesla's future operations will be tested. In addition to the damage to the brand image, the halo is gradually declining, demand is slowing down, and fierce competition from other auto suppliers may affect Tesla's sales. And the outlook for earnings continues to deteriorate.

Furthermore, the continued rate hikes in the United States may exacerbate the risk of an economic recession in 2023, which in turn will hit car buying. This is bad news for Tesla, and Wall Street analysts are not optimistic that Tesla's stock price can be revived.

Even so, there are still some loyal retail investors who increase Tesla’s stock price on dips, hoping that Tesla will one day achieve another brilliant performance in 2021. How will technology madman Musk reverse Tesla’s decline and turn the crisis into a Turnaround, the whole world is paying attention.

Musk's every move affects the trend of Tesla's stock price.

(Bloomberg)

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