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On Tuesday, the price of Tesla stocks fell 21 percent, the worst result in the electric carmaker’s history, after Elon Musk was not included in the S&P 500 stock index, which features the largest American companies. , contrary to the expectations of many investors. Shares of Tesla already overcame their first shock Wednesday night: The day closed after a 10.9 percent rise to $ 366.3.
If one looks now at the 2020 exchange rates, it appears that a stock reached four times more in September than at the beginning of the year, so the current drop and omission may seem unfair, although this is market rationality in all senses. On the surface, Tesla is the company of the future that has been able to turn a profit in the last few quarters and is building the brand with perhaps one of the best marketing strategies in the world, as well as delivering technological results that show the proliferation of electric cars.
In fact, from an auto and stock market perspective, it was precisely unrealistic that Musk’s stock has become virtually expensive so far because of the promise and admiration surrounding the CEO. This has led to the controversial situation that while it is the most important market in the United States, according to the latest data, the brand has a market share of only 1.3 percent, but it is still the most valuable automotive company. of the world, with a market capitalization of 307.7. it was around a billion dollars. By comparison, for the much more widespread list-leading Toyota group, this figure is only around 182.9 billion.
The coronavirus epidemic also played a major role in Tesla’s staggering price spike, as a significant portion of people’s savings migrated to the stock market during the emerging crisis, as there was no point in keeping money in a bank account. in an environment of negative interest rates, well below inflation. The WSJ also mentions that between April and August, the popular US stock exchange trading platform Robinhoodon increased to 560,000, roughly doubling the number of users who owned Tesla shares.
In addition, several countries in Europe began to support the purchase of electric cars with large sums (such a program was launched in Hungary), which sent a false message to shareholders about the market. While car market sales in Europe have fallen 35 percent from January this year to August, electric cars have reported a 45 percent increase over the previous year. In the case of electric cars, the outstanding result was due to the low base: the increase represents a total of 53,200 cars sold, compared to 23,400 in July last year.
And many have already overlooked that Tesla did not fit in the top ten on the European market electric car sales charts with any of its models. However, there are the electronic versions of the much less popular Renault Zoe, Hyundai Kona and Volkswagen Golf that dominate sales here. In the US, Tesla has remained the biggest player since then, but the electric car market is just getting started and the growing supply of rivals is eroding the brand’s dominance.
However, for stock market analysts and big investors, metrics like how much profit Tesla made and which ones are more important. The picture is ambiguous here too: On paper, the company closed the last four quarters in profit. In the three months to the end of June, the automaker, named after the Serbian-American physicist-inventor, made an after-tax profit of $ 104 million, 50 cents a share compared to $ 408 million in the US. prior year and a loss of $ 2.31 per share.
But here’s a catch, too: Although the company’s revenue from car sales increased, but would not have made a profit on its own, it would have required the sale of its emission quotas. The company reportedly generated $ 428 million in revenue, which now looks like a good deal as consumer confidence declines, but if car sales pick up again and Tesla has to free up production capacity, it will no longer be able to. sell them.
The number of cars produced is still very low at Tesla – it has averaged around 90,000 units in the last eight quarters. In the case of the stock market, on the other hand, automakers, which frequently collapsed during crises, tend to rely on millions of capacities, which could easily turn the brand into a decade, as the analysis of MarketWatch.
By the way, the current decision doesn’t mean that Tesla, one of the biggest stories in the stock market in recent years, will be left out of the S&P 500 basket for long. The evaluation committee itself indicated that they could decide to add new players at any time. But in today’s unrealistic market conditions, where the mere assumption that it could be included in the index has already led to a jump in the price of paper, the rating would have been a risky move, certainly leading to a higher appreciation. And with companies priced above their actual capabilities and fast, everyone has been cautious since the Enron crash.
Napi.hu
(Cover image: Tesla Showroom in New York. Photo: Spencer Platt / Getty Images)
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