Tesla feels the pain, gives a discount and sees the share price fall again.
The attention from Elon Musk and to Elon Musk these days has mainly to do with Twitter. But we car enthusiasts, of course, find it much more interesting to see what is happening with Tesla. Now the two things are not completely separate from each other. For example, some blame Tesla’s recent stock market decline on Elon’s preoccupation with Twitter.
Wokies
Not only is the Muskias quite busy with the medium, it is also what he is up to there. For example, with his actions he encounters quite a lot of D66ers and others wokies against the chest. For example, by allowing Donald Trump back into the medium, by banning some left-leaning journalists and making some (very) slightly critical comments about the LGBTI community.
Tanning question
All this kind of thing scares off that part of the population that might be in the market for a Tesla. At least that’s what critics think. Whether this is the case or not is difficult to measure without conducting an in-depth meta-analysis of data. Data that only media such as Twitter have at their disposal. It is clear that Tesla still appeals to the imagination. This morning we wrote about the popularity of the Tesla Roadster on Google. But the fact that the demand for ordinary, existing Teslas is somewhat waning is actually clearly signaled by Tesla giving a discount.
$7,500
Yes! Over the past year, prices went up almost weekly (literally sometimes). Now, however, Tesla in America gives people a discount if they quickly buy a Tesla. That discount used to be $3,750, but was increased to $7,500 last Thursday. Let’s face it: manufacturers don’t give discounts if they don’t have to. Analyst Gordon Johnson therefore believes that demand for Teslas in the United States has completely collapsed. For the third consecutive quarter, Tesla will build more cars than it sells, according to Gordon. Previously, this was almost always the other way around at Tesla.
Hit the stock market
The day the extra discount was announced, Tesla had its third worst day on the stock market since the company’s IPO. At the same time, Elon Musk promised that he will no longer sell Tesla shares for the time being. Now Elon did the same in April… and since then he has sold $14.4 billion worth of shares this year.
End of decline in sight, or beginning of decline in sight?
Whether the pain is over now, however, that is entirely the question. Tesla is still the highest rated “car company” in the world. Ironically enough, in terms of turnover and sales, it actually had ‘a good year’ last year. Nevertheless, there is not really anything tangible that makes the valuation ‘logical’, other than the belief in Elon. Now that the latter is increasingly discredited, it may be a matter of waiting for the really big blow.
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