Tesla's Stock Prices Plummet On News Of Chinese Model 3 Delay
Stocks soar despite coronavirus and a recession. But the haters appear to be playing a role, too: After betting that the company would fail, many seem to be cutting their losses — and that is actually pushing shares higher. I used to work for a company called Portal Software - publicly traded at the time, but small enough that actual news was like monthly not constant like with Tesla.
Last week's earnings show the company has now posted a small profit for two quarters in a row, which is causing some investors to think the hyped-up company is finally starting to live up to its promise. That story may well be true, but while technology may be favouring Tesla, the share price performance could tell a different story later on.
As gas goes down to $1.50, not as many people will want to buy electric cars, and at the same time a credit crunch will mean that fewer people will be able to finance them. If Tesla can also reveal production-cost improvements on Battery Day, it could transform the company into a top battery supplier and widen its total addressable market, Ives said.
Became the most highly valued automobile manufacturer in U.S. history A nearly fourfold increase since July brought its stock to $471, carrying its market cap ( $85 billion ) far beyond those of General Motors ( $50 billion ) and Ford ( $37 billion ). Since then, Tesla has surged past Volkswagen AG to trail only Toyota as the world's most highly valued automaker.
At the same time, the steady rise of passive investing, in particular index funds that buy a broad cross section of stocks, has had a massive influence on the market's long bull run. But a wave of relatively unsophisticated investors has joined the frenzy with the help of unconventional middlemen like E-Trade, a low-fee online brokerage that makes buying stocks as easy as buying stuff on Amazon.
On July 1, Wood tweeted Tesla owners at some point in the future will each earn $10,000 in free cash flow every year by including their cars in a Tesla robotaxi network. Factor in an anticipated surge in electric a cars over the next five years from BMW, Ford ( F ) - Get Report and General Motors ( GM ) - Get Report , as TheStreetreports, and the market may be getting ahead of itself on Tesla.
Two years ago, to demonstrate his seriousness, Musk agreed to an extremely unusual pay package : He won't take a salary, but if he can hit various market value thresholds — starting Tesla Analysis at $100 billion, and going up in increments of $50 billion to $650 billion — he'll get bigger and bigger stock payouts.