In addition, Tesla’s market capitalization increased by $125.57 billion (currently about RMB 895.314 billion), or 24.11%, this past May.

Tesla has had a lot of good news lately. Previously, Tesla CEO Musk just finished a visit to China, his second visit after three years, which is seen as an important signal for Tesla to continue to increase its presence in the Chinese market.

On the other hand, the U.S. government confirmed Tuesday that all Tesla Model 3 models are eligible for the $7,500 (currently about $53,475) electric vehicle tax credit, which will bring the rear-wheel-drive version of the Model 3, originally priced at $40,000, directly to the $30,000 bracket, further enhancing Tesla’s appeal to consumers.

Panasonic recently announced plans to expand the capacity of its electric car battery factory jointly operated with Tesla in Nevada by 10% by March 2026, which also reflects Tesla’s confidence in its future electric car sales.

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Tesla

After cutting prices by as much as 20% in January, Tesla delivered a record 422,875 vehicles in the first quarter, but that was only 4% higher than the previous quarter. Several analysts said the figures raised questions. There are concerns over whether Tesla will need to cut prices further this year in order to meet CEO Elon Musk’s goal of delivering 2 million vehicles by 2023.

Tesla shares fell 6.12%

“Many investors believe that Tesla’s recent price cuts reflect its structural cost advantage, which could enable the company to buy more,” Bernstein analyst Toni Sacconaghi wrote in a note after the report’s release. Let it put pressure on competitors, get huge volumes, and dominate the EV market. We maintain that price cuts have and will hurt industry profitability (including Tesla), but incumbents have deep pockets and are unlikely to budge .”

As of Monday’s close, Tesla’s stock price fell by US$12.69 to close at US$194.77, a drop of 6.12%. The market value evaporated by US$40.1 billion (about 275.8 billion yuan), leaving US$616.3 billion.

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In 2022, Tesla’s stock price has plummeted all the way due to rising prices of Tesla cars, delays in the launch of some products, and market concerns that Tesla CEO (CEO) Elon Musk will be distracted by the acquisition of Twitter. Over the course of last year, the stock tumbled 65%, its biggest annual drop since it went public in 2010.

After slumping in 2022, Tesla shares soared 50% in less than a month in 2023, as a massive price cut in early January helped the company rebound.

In addition, Tesla’s strong financial results for the fourth quarter of 2022 also pushed the company’s stock price higher. At the time, the company reported record fourth-quarter revenue and net profit, beating consensus estimates and saying it could produce 2 million vehicles by 2023.

As of the close of U.S. stocks on Wednesday local time, the company’s stock price rose 2.48% to close at $193.88, and the company’s market value reached $613.456 billion. Tesla shares are up 54% so far this year.

Tesla’s upward momentum could be attributed to increased optimism about the economy and the market, benefiting from price cuts and a positive demand outlook, among other factors. Also, there has been less drama surrounding Musk’s acquisition of Twitter.

In early March of this year, it was reported that since the beginning of 2023, the popularity of Tesla stock among retail investors in the United States has continued to “explode the table”. Retail investors are snapping up Tesla shares at a frantic pace, and have repeatedly set new records for single-day purchases.

In recent months, Tesla has cut prices in major markets such as China, the United States, Europe, Canada, Australia, and New Zealand. After the price cut, the company saw a surge in demand for its cars. Tesla CEO Elon Musk revealed that in January this year, the order volume Tesla received was more than twice the production volume.

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▲ Tesla’s annual deliveries miss expectations

As of yesterday’s close, Tesla’s stock price fell by US$15.08 to close at US$108.10, a drop of 12.24%. The market value evaporated by about US$47.7 billion (about 329.9 billion yuan), leaving US$341.4 billion. Tesla’s market value once exceeded $1 trillion.

▲ Tesla’s stock price fell 12%

Tesla released data on Monday that the company produced a total of 439,701 vehicles in the fourth quarter and delivered 405,278 vehicles, which was less than analysts’ average estimate of 420,760 vehicles; a total of 1.37 million vehicles were produced for the year and 1.31 million vehicles were delivered. A 40% increase from 936,000 vehicles in 2021, failing to meet the target of a 50% increase in annual deliveries.

Tesla is facing serious demand problems, Bernstein analyst Toni Sacconaghi said in a note Monday. “Tesla’s annual order run rate (including deep discounts) in the fourth quarter was only about 1 million vehicles, while the company aims to sell nearly 2 million vehicles in 2023. We expect demand challenges to persist in 2023.” Sacconaghi said. He noted that apart from the seven-seat version of the Model Y, no Tesla model is currently eligible for the Inflation Reduction Act rebate.

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At the beginning of 2021, Tesla shares traded at about $30 on a split-adjusted basis, eventually peaking at more than $400 in November 2021. Its market capitalization also ballooned to more than $1.2 trillion, making it one of the largest U.S. companies by market capitalization. Tesla shares closed at $123.15, the lowest point in two years.

At the start of 2021, Tesla shares were trading around $30 on a split-adjusted basis, eventually peaking above $400 in November 2021. Its market value has also ballooned to more than $1.2 trillion, making it one of the most valuable companies in the United States. Tesla’s stock price closed at $123.15, the lowest point in two years.

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Tesla Model 3

As of the third quarter of this year, Tesla’s share of the U.S. market for newly registered electric vehicles was 65 percent, down from 71 percent last year and 79 percent in 2020, according to the data. S&P Global Automotive forecasts that by 2025, the number of electric vehicle models in the U.S. is expected to increase from the current 48 to 159, and Tesla’s electric vehicle market share will fall below 20 percent.

The decline in Tesla’s U.S. market share is to be expected, but the speed of the decline could worry investors in Elon Musk’s auto and energy company. Tesla shares closed down about 1 percent to $180 yesterday as Elon Musk focused his attention on turning around his recently acquired social media company, Twitter. So far this year, Tesla’s shares have fallen by nearly half.

The report says Tesla is slowly losing its dominance of the U.S. electric car market, replaced by all-electric vehicles that now cost less than $50,000. In this segment, “Tesla is not yet truly competitive. Tesla’s entry-level Model 3 starts at about $48,200 (including shipping), but the car is typically offered with more configuration options and sold at a higher price.

“Tesla’s position is changing as new, more affordable options arrive that offer equal or even better technology and production building blocks,” said S&P Global Automotive, “and given that consumer choice and interest in the electric vehicle market is increasing, Tesla’s future ability to maintain its dominant market position ability to maintain market dominance will be challenged.”

This follows reports on Monday that Tesla is developing an improved entry-level Model 3 designed to lower production costs and reduce internal components and complexity. Elon Musk said during a third-quarter conference call in October that Tesla would eventually develop a new, more affordable model. He first teased the model in 2020.

Stephanie Brinley, associate director of automotive research at S&P Global Automotive, noted that Tesla’s sales are expected to grow in the coming years, despite a decline in market share.

Tesla’s current leadership position in the electric vehicle segment is based on a relatively insignificant market. Despite the attention on electric vehicles, sales of pure electric and plug-in hybrid vehicles remain negligible.

Of the 10.22 million vehicles registered in the U.S. through the third quarter of this year, about 525,000 were all-electric models, or 5.1 percent, up from 334,000 and 2.8 percent in the third quarter of 2021, according to S&P Global Automotive. As of September, the majority of electric vehicles registered in the U.S. (nearly 340,000) were Tesla, with the rest very unevenly distributed among 46 other brands.

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As of Monday’s close, Tesla’s stock price fell 6.8% to close at $167.87, the lowest level since November 2020, and its market value has evaporated by about $38.9 billion (about 278.7 billion CNY).

Prior to this, Tesla announced a recall of more than 320,000 vehicles in the United States due to faulty taillights. At the same time, the epidemic has also put Tesla’s production and sales at risk.

Tesla’s market value has evaporated more than $430 billion in more than two months

Tesla’s shares have lost nearly half of their value in less than two months as supply chain disruptions mount, raw material costs soar and would-be buyers are squeezed by stubborn inflation and rising interest rates.

Data show that since mid-September this year, Tesla’s market value has evaporated by more than 430 billion US dollars (about 3 trillion CNY). Tesla’s market value, which once topped $1 trillion, was down to $530 billion.

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