Tesla Global News #21

TLDR for this Week

• Stock and Sales Performance: Tesla’s stock has taken a beating, dropping 11% this week due to weak global sales, particularly in China and Europe. Despite this, the company retains a strong market cap and some analysts see a potential rebound on the horizon.

• Autonomous Driving Promises: Musk’s latest pledge to launch robotaxis by June 2025 in Texas has reignited debate about Tesla’s self-driving capabilities. While investor interest is piqued, experts remain skeptical about the feasibility of this timeline.

• Strategic Expansions: Tesla is diversifying its efforts with new insurance discounts, Boring Company projects, and battery storage facilities. These moves aim to bolster long-term growth but have yet to address immediate sales and stock challenges.

Tesla’s Stock Takes a Hit Amid Global Sales Slump

Tesla’s stock has been on a rollercoaster ride, and this week was no exception. Reports indicate that the company’s shares dropped significantly, with a notable 11% tumble over the week, marking its worst performance since October 2024. This decline comes on the heels of disappointing sales figures from key markets worldwide, including China, Europe, and even California. Analysts are pointing to a combination of factors, including increased competition from domestic rivals like BYD in China and a perceived stagnation in Tesla’s product lineup, which still heavily relies on the Model 3 and Model Y for over 95% of its sales.

• China Sales Drop: Tesla sold 63,238 vehicles in China in January, an 11.5% decrease compared to the same period last year, impacted partly by the Chinese New Year holiday timing.

• European Market Struggles: In Germany, sales hit their lowest since 2021, and similar declines were reported in France and the UK.

• Investor Sentiment: Despite the sell-off, some market watchers, like Mark Newton from Fundstrat, suggest that Tesla’s stock might bottom out within the next 2-3 weeks, potentially presenting a buying opportunity for optimistic investors.

The narrative of Tesla’s stock being “priced for perfection” has resurfaced, with concerns mounting over Elon Musk’s numerous commitments and the company’s ability to deliver on ambitious promises like robotaxis. However, Tesla’s market capitalization remains robust at $962.73 billion, reflecting its significant presence in the EV sector despite these challenges.