To The Moon

In my opinion, Tesla's pricing strategy is based on market demand, and they may raise or lower prices for certain car models accordingly. Therefore, the 7% increase in stock price is not a significant issue.

After Tesla reported better-than-expected fourth-quarter earnings on January 25, the company's stock price immediately surged by 5%, and continued to rise in the following weeks, reaching a three-month high of $241 on February 9. This success can be attributed to the company's marketing strategy of lowering prices. As a result, Elon Musk stated that the company is expected to produce 2 million cars this year, almost double the production rate, and the stock has risen more than 80% so far this year, which is of course related to its pricing strategy.

In fact, Tesla's car sales have been boosted by its significant global price reductions, which have reached up to 20%, and this feat cannot be replicated elsewhere as it puts pressure on profit margins. In addition, as other automakers sell more electric vehicles (EVs), the company is losing market share, which could soon impact the stock price of electric vehicle manufacturers. In the fourth quarter of last year, the automotive gross margin was 25.9%, lower than the previous quarter, which increases costs and affects profit growth. Furthermore, Tesla is also facing competition from other car companies, such as NIO's new models and price cuts, BYD's entry into the UK, and their rapid development, all of which are putting pressure on Tesla. Of course, Musk said that if competitors can produce better cars, he wouldn't mind if Tesla went bankrupt.

This statement shows that Tesla has a sense of crisis, implying that the company needs to play to its strengths and perform better than other car companies in order to improve its performance. However, given the current decline in deliveries, it suggests that the company is entering a period of decline, which will only get worse without any special circumstances. Referring to Chinese e-commerce stocks, it is obvious that as long as rent and store rent do not decrease, with a population of 1.4 billion as a basic foundation, their performance will not deteriorate significantly. However, Tesla does not have its own basic foundation and can be driven out of the electric car market by competitors at any time. The defeat of Tesla in the Chinese market is already inevitable, and as traditional automakers in Europe and America gradually enter the electric car market, Tesla, as a company with no underlying foundation or brand value, will not be able to escape the fate of having its market share taken away.

Therefore, I think Tesla's stock price may peak at $250. The future prospects depend on how Tesla can improve its internal operations and rebuild customer confidence, which is even more important.

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