Tesla shares plunge nearly 8% as Musk tweets tesla shares are too high

Tesla CEO Elon Musk tweeted that Tesla’s stock price is too high. Tesla’s shares fell after the news, extending to nearly 8 percent. ‘I’ve sold almost all of my tangible property and I won’t have my own property,’ Musk said. A week after the new policy on new energy vehicle subsidies, Tesla has adjusted its pricing system relatively quickly to meet the latest subsidy requirements.

Tesla shares plunge nearly 8% as Musk tweets tesla shares are too high

On May 1, Tesla China announced that the pre-subsidy for the Model 3 standard battery-renewed version in China had been reduced from 323,800 yuan to 291,800 yuan, and that the actual starting price of the car would be 271.55 million yuan, plus the existing subsidy of 20.25 million yuan.

Tesla’s Shanghai plant is back in business better than expected, with model 3 expected to have a weekly capacity of 4,000 vehicles and 200,000 vehicles a year by the middle of this year, Tesla said in a recent earnings release.

Tesla shares plunge nearly 8% as Musk tweets tesla shares are too high

In the first quarter of 2020, Tesla’s total revenue was $5.985 billion ($42.3 billion), up 32 percent from $4.541 billion ($32.1 billion) a year earlier, and net profit attributable to ordinary shareholders was $116 million ($113 million), compared with a loss of $702 million ($4.967 billion).

Meanwhile, Tesla’s auto business gross margin reached 25.5 percent in the first quarter, up 5.3 percent from a year earlier. Tesla hit its highest gross margin in nearly 18 months, both in terms of gross margin and the company’s overall gross margin (20.6 percent).