--Tesla shares sank 8% on Tuesday and have now lost most of their gains that followed the election in November.
--The stock has plunged 25% this year, while the Nasdaq is down just 1.5%.
--Reuters reported on Monday that the company’s long-awaited upgrade of its partially automated driving system in China left owners unimpressed.
$479 in Dec to $302 now but steadily dropping from $426, since Jan 20.
I confess I am skeptical that "that the company’s long-awaited upgrade of its partially automated driving system in China left owners unimpressed." is a primary driver here.
I think we're all just sitting here amazed the share price is as high as it is. Strong Competition that's only growing, an outdated model lineup, Alienated customer base, underwhelming FSD, earnings misses, sales slumping across Europe, the list just keeps going.
Somehow it's still worth 3x Toyota.
The share price is so detached from the underlying fundamentals that it increased significantly when Trump won the election, despite him not having any plans for EVs and likely to roll back a lot of Bidens Climate / EV moves.
Personally, I think people are scared to bet against Tesla, either by selling, or by shorting, because something completely unrelated to the fundamentals of being an EV manufacturer could cause the share price to shoot up again. So everyone is just watching to see what happens next.
for sure. however p/e was over a 100 even before election etc. elon is running a ponzi scheme lying to investors for over a decade now about fsd and “robotaxis” and all kinds of other nonsense. it has been working and election propelled this nonsense as anyone worrying about regulation stop worrying as elon will be able to do whatever he wants. end of the day, it will all eventually come crashing down…
One thing that's interesting about the attention economy is -- I feel like Musk's biggest risk is someone taking the attention away from him. It puts in context some of the crazy attention grabbing things celebrities like Ye have done, and Musk's purchase of Twitter. If another Entrepreneur captures the imagination of investors, that would probably be the end of Musk, he's probably literally dependent on the investor attention he gets that inflate the companies value, and now he has some influence on the chance another Entrepeneur goes viral.
If that's the case, then he likely has to keep getting more and more extreme to maintain the attention. This is going to be turning sentiment against him, and he's probably also hitting his limits with the nazi rhetoric / sieg heil.
Eventually, attention will wander. He's done an excellent job of keeping it as long as he has, and profiting from it, but how much longer can he maintain it?
I confess I am skeptical that "that the company’s long-awaited upgrade of its partially automated driving system in China left owners unimpressed." is a primary driver here.