To The Moon

The decline of Tesla Tesla.US$Tesla Motors(TSLA)$  is mainly due to two reasons. The first is Musk’s reduction of holdings, and the second is Tesla’s weak demand. It is rumored that the Shanghai factory will suspend or reduce production. 

These are discussed in details below:

Revelation 1: 

The high volatility of growth stocks. Tesla has fallen by nearly 70% this year. This is the ups and downs of growth stocks. It has increased by 20 times since 2020. It was so good at that time, but now it is disheartened.

This is why the valuation and performance of growth stocks are most sensitive to changes in interest rates. First of all, interest rates directly affect the valuation of the stock market, especially growth stocks with a relatively large imagination space. Secondly, under the condition of high interest rates, the behavior of growth stocks to expand production and increase performance will also be suppressed by high interest rates, and financing will also be affected. Being suppressed, his performance weakened, and he was double-killed by Davis.

Revelation 2:

what we need to pay attention to is the impact of the weakening demand for new energy vehicles on global new energy listed companies. The recent decline in new energy in A-shares is actually Tesla's contribution. On the one hand, it created panic about the weak demand for new energy. In addition, the price of silicon materials fell and the excess production capacity just found a perfect reason for the decline. .

Moving Forward:

Looking forward to the future, Tesla, as the leader of the entire new energy industry chain, will inevitably have some impact on the demand for new energy, whether it is the linkage between the Chinese and American new energy sectors, or the relationship between the upstream and downstream of the industry chain, so the new We still need to pay attention to the energy sector. In the process of the recovery of China's consumption and real estate in the future, new energy vehicles are part of the lower expectation difference, because of its relatively huge growth rate in the early stage, and the favorable policies should be given out as much as possible.

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