Since the beginning of this week, Tesla's stock price has been in a "continuous decline" trend. After two consecutive days of sharp declines, the stock fell another 2.32% on Wednesday to $176.54. As a result, its market value has correspondingly dropped to $553.183 billion, falling out of the top 10 companies in the United States by market value.
Meanwhile, Visa rose 0.4%, breaking through $280 and ranking 10th with $563.4 billion. According to Dow Jones Market data, Tesla's stock price has fallen by 29% so far this year. However, it should be noted that since January 2023, the company has never fallen out of the top 10.
In fact, after the "frenzy" of 2023, Tesla seems to have lost its momentum this year, which can be said to be "internal and external troubles, chicken feathers everywhere.". Wall Street's concerns about the company are also increasing, including competitive pressure from overseas, the impact of price reductions on profits for some models, and a series of controversies led by CEO Musk himself.
Since the beginning of this week, Tesla has fallen 12.9%, marking the worst three-day trend since October 20, 2023. Musk also lost his "world's richest man" throne as a result. Even the loyal fans of Da Mo couldn't help but lower their target price. Earlier this week, due to concerns about losses, the bank's analyst Adam Jonas lowered its target price from $345 to $320.
Market research firm Baird Equity Research analyst Ben Kallo also believes that comments about price cuts and cost improvements that may fluctuate suggest that profit margins may not have bottomed out yet. He expects the gross profit margin to continue to decline in the first quarter. In addition, he believes that the quarterly delivery volume is also not optimistic, and expects Tesla to deliver about 4211000 cars in Q1, which is 67900 fewer than Wall Street's overall expectations.
In fact, Tesla's delivery issues have always been a major concern for Wall Street. Analysts suggest that Tesla's delivery in the first quarter may be dragged down by factors such as supply chain disruptions caused by the Red Sea attack, suspected arson at the Berlin factory, and shutdown of the California factory in preparation for the production of the new Model 3.
On the other hand, Jonas previously pointed out that despite significant price reductions, demand for electric vehicles in major markets continues to be weak. He said, "Although Tesla may be the world's most technologically advanced automotive company, its product line is the oldest among all major OEMs, with almost all product lines launched before 2020."
It is urgent that Tesla will not release the next generation of cheaper models until the end of next year.
Tudor Pickering analyst Matt Portillo said, "To prove that Tesla's current stock valuation is reasonable, it needs a car for the mass market, and Cybertruck is clearly not the solution." According to Musk, the truck will not be mass-produced until next year.
At the same time, Visa's stock price has maintained relative resilience, with a cumulative increase of about 8% so far this year and a cumulative increase of 24% in the past 12 months.
Visa CEO Ryan McInerney stated on Tuesday that the company has seen a "stable" spending pattern in the United States, despite some slowdown in spending in certain international markets with high floating rate mortgage ratios.