Over the past month, Tesla shares have fallen in price by more than 33%, and since the beginning of the year by 40%. At the beginning of April, for one paper on the stock exchange, they gave $1145, and now – only 747 dollars with the previous low of 622.
According to a number of media, many investors began to use their rights to early sale of the company’s shares, and this is not counting stock speculators who play “short”. In other words, the fall in the value of the group’s shares makes investors want to sell them as quickly as possible, which in turn only accelerates the fall of Tesla’s (TSLA) stock price.
What happened to the TSLA premarket stock price today?
The fall in the value of securities was caused by a number of factors not directly related to the company. Perhaps it all started with the announcement of Elon Musk’s purchase of Twitter. At that time, Musk was the richest man on the planet, but this wealth itself was contained in Tesla shares.
In order to raise the necessary amount to buy Twitter in dollars, Musk was forced to start selling Tesla shares, thereby triggering their fall. Further, several more negative points occurred, including the accusation of Musk himself of sexual harassment.
The head of the company rejected them, offering to prove the falsity of the accusations by the fact that the alleged victim of harassment does not know and cannot know what tattoos and scars he has on his body. However, this did not save Tesla’s after-hours stock price from another 10% drop at the end of May.
TSLA stock price discussion: will it recover?
Tesla is the most valuable car manufacturer in the world. Even after a 40% drop in stock prices, Tesla is worth more than three times as much as Toyota. At the same time, Toyota sold ten times more cars last year than Tesla.
Such a high cost of Elon Musk’s concern is based on investors’ expectations of further sales growth + experts’ Tesla stock price prediction for 2025, and not on current indicators.
Yes, Toyota is selling more, but its sales aren’t growing, its plants are half-loaded, and the outlook is dim. Tesla’s sales are skyrocketing, there are year-long queues for electric cars, and factories are overloaded (and new ones are being built).
However, in an environment where the company’s value is based not on real assets, but on the expectation of future victories, stocks can quickly and briefly fall. Fluctuations in their rate can be measured by tens or even hundreds of percent in a short period of time.
What’s wrong with TSLA stock price now?
The company is showing record profits and is rapidly increasing production and sales. The money earned is enough to invest in the construction of new factories. Simply put, objectively, Tesla is doing better than any other automaker.
A negative Tesla stock price forecast would be a problem if the company had to sell its shares to attract investment. But the company does not need investments now, as it has enough funds for development.
As a result, only shareholders and, first of all, Elon Musk personally suffer from the fall in the share price. Last Friday alone, his fortune decreased at once by 10 billion dollars, although he remained the richest man in the world.
Tesla stock price prediction for 2030
The company plans to:
- Deliver 50% more vehicles.
- Engineers will focus on the development of the Optimus robot, which will perform monotonous and boring work instead of a person.
- Launch electric car production lines at new gigafactories in Austin and Berlin.
Investors should pay attention to Elon Musk’s statements about various innovations in the company. According to the company’s analysts, revenue could reach $76.8 billion (+43%), while earnings per share are expected to be within $9.73 (+44%).
Talking about Tesla stock price prediction, experts believe that the shares of the electric car maker could grow even more in value – up to $1.8 thousand per security if even more electric vehicles are sold in China in 2022.
At the same time, the company will introduce new large and powerful batteries – they have a longer service life and they will reduce production costs. Today, TSLA (Tesla) stock price target is $1,200. For those who invest for a long time, these shares will become a promising asset.
At the beginning of November 2021, Tesla shares reached an all-time high – one security was worth $1,243. The reason for this growth was Tesla’s deal with the American company Hertz Global Holdings Inc, which ordered 100,000 electric vehicles. The week before, one share was worth $1,024.
Reminder – Tesla stock price per share today is $747. Quite a nice discount. isn’t it?