Earlier this month, Musk’s “Dreamer” cries seemed to obscure the “reality” of his main company, — Tesla, when we described the successful launch of Musk’s space company, SpaceX’s manned Dragon, in “Elon Musk: Rocket Ascending, The Car Crash.”
At the time, we analyzed the sudden acceleration of delivery of Tesla’s new Model Y, the global price reduction of almost full-line models, and the mismatch in capacity and demand. Now, there are more signs that teslas are about to face a “demand hell” even as they emerge from their previous capacity hell and delivery hell.
Today, Tesla’s registrations in California, one of Tesla’s most important markets in the U.S., have fallen sharply in the past two months, according to dominion Enterprises, a research firm.
In April and May of this year, Tesla’s vehicle registrations fell by 37 percent, while California was Tesla’s largest market in the U.S., with registrations in the state down 16 percent in April and a 70 percent plunge in May, with 6,260 and 1,447, respectively.
In the boroughs of New York, Florida and Texas, the number of Tesla vehicle registrations fell 33 percent to 14,151. That was in stark contrast to Tesla’s first-quarter report, which many On Wall Street speculated was clearly a major blow to the outbreak.
This morning, Morgan Stanley also reiterated Tesla’s sell-off because of continuing concerns about tesla demand in China. A week ago, Damore downgraded the company, and analyst Adam Jonas said “we are under-invested due to tesla concerns about China, competition, capital demand and short-term demand.” “
In fact, tesla sales in China increased significantly a week ago, with Tesla’s new energy sales reaching 11,095 vehicles in May, according to national passenger car production and sales data released by the Federation in May 2020. In April, Tesla achieved only 3,635 units, and in the face of a 200% monthly sales increase, why should Big Coma worry about Tesla’s demand in China?
As we mentioned in our previous article, the actual target for Tesla’s Shanghai plant, which targets Chinese users, is 500,000 vehicles per year, compared with the current target of 4,000 units per week. Even with recent increases in Tesla’s sales in China, actual target production still outstrips real demand.
Goldman Sachs is also the investment bank that also downgraded Tesla. Goldman Sachs downgraded the company to neutral from buy.
Goldman Sachs said it remained bullish on Tesla, but recent price cuts and production challenges facing Model Y could overshadow the company’s short-term outlook, although it downgraded the company in a broader report on sales forecasts for the auto industry, which has improved.
Goldman sachs also explained the reasons for the downgrade: “Although Tesla’s stock has been expensive, we are aware that the company’s valuation has now been pushed up by the market as a whole.” Given The absolute price-to-earnings ratio of Tesla’s premium and the historical volatility of Tesla’s share price, we believe that Tesla’s fundamentals are higher than other stocks, which could pose a challenge to near-term results. “
Goldman was surprised by Tesla’s price cuts at the time: “Tesla recently cut the price of several models (we didn’t expect this outside the Chinese market, which we thought was a modest negative effect). At the same time, Goldman Sachs upgraded GM’s rating, saying it was in a “good position” in the U.S. pickup market and China’s recovering auto market.
Discounts on all-in-line vehicles worldwide
Analysts at Goldman Sachs say Tesla’s price cut means that in late May, Tesla cut the U.S. price of all its electric cars by $2,000 to $5,000. The starting price for the most affordable and best-selling Model 3 in the U.S. is now $37,990, 5% cheaper than the previous $39,990.
On the Chinese side, TSLA also unexpectedly cut the price of its imported Model S and Model X sedans in China by Rmb29,000 ($4,060), according to Tesla officials. Earlier, Tesla in May will be made in Shanghai Model 3 standard model model in China directly reduced prices of 10,000 yuan, may 14 domestic Model 3 long-range version of the model model in China in disguise, a price reduction of 20,000 yuan.
In Japan, model S and Model X models also reduced prices by 3.6% to 4.5%, respectively.
Tech stocks hot speculation pushes up share prices
Tesla’s share price has hit new highs this year and hit the $1,000-a-share mark at one point today, falling back to close at $991.79. The current market value has reached $183.849 billion, more than Toyota’s market capitalisation of nearly $5 billion. We believe there is no shortage of reasons for the recent boom in U.S. technology companies and retail buying.
Since the outbreak, the market value of technology stocks has expanded as a result of the embargo policies of countries fighting the outbreak, and by the end of last month, THE market value of the five shares in FAAMG has accounted for 20 percent of the market value of the entire S.P. 500 index company. “The epidemic blockade has accelerated the fragmentation of the tech giants and other companies in the market: it is clear that there are winners and losers in the economy amid long-term closures and social alienation,” JPMorgan analysts note. Large technology companies benefit from telecommuting, software/cloud computing, online shopping, and socializing. It is not surprising that big technology stocks are close to record highs. “
Tesla, though a car maker, has been flying the technology-driven flag, and Musk’s space technology company, SpaceX, has made frequent headlines in recent days, and the surge in Tesla’s stock has had a positive impact.
Since the outbreak swept the U.S., with millions of small and medium-sized U.S. retail investors flocking to the stock market and Tesla dominating the Robintrack trade hot list, Tesla’s share price has been climbing this year, and Its holdings have risen by more than 145 percent, and the stock has risen more than 1.4 times. (Sina U.S. shares Link)