Stock Market
Tesla Stock a Hype, Says Expert After Stock Plunges 62.4% Year to Date
Tesla stock price has lost $249.70 or 62.44% of its value year to date. Presently, trading at $148.48 a unit.
Investors have started dumping Tesla stock amid the uncertainty surrounding the future of the company following the Twitter acquisition and reports that Elon Musk has sold $23 billion worth of the company’s stock in 2022 alone.
Experts are skeptical that the Twitter acquisition will impact Elon Musk’s concentration, especially given a series of production hiccups and the slowdown in China’s sales.
Tesla stock price has lost $249.70 or
A veteran venture capitalist, Bradley Tusk, has however described the stock as a hype pumped by Elon Musk through his various activities on social media.
“So much of Tesla’s share price is based on hype and the pixie dust that Elon Musk is so good at putting out there. When he risks puncturing that image, it doesn’t just reflect on Twitter but Tesla, SpaceX, and everything else he is doing”, he said.
While arguing that Tesla is a great company, he insisted that Tesla does not worth General Motors, Toyota or Ford.
He said “Is Tesla a great company that produces a great car? Absolutely. Is Tesla worth what General Motors should be or Ford or Toyota should be? Of course not.”
Last week, Goldman Sachs cuts its Tesla stock target from $305 to $235 but still maintain its buy rating on the company
“We believe that Tesla remains well positioned for long-term growth as an EV cost structure and full solution leader (e.g. providing vehicles, charging, storage, software and services in a well integrated manner), and we maintain our Buy rating on the stock,” Goldman analyst Mark Delaney wrote today in a note today.
However, other factors like rising electric vehicle companies in the United States, production challenges and possible recession are expected to slow down Tesla’s growth in 2023 and even beyond.
“It’s a brutal spiral that Musk has caused with fears of him selling more stock pressuring the name along with demand concerns,” Tesla watcher Dan Ives told Yahoo Finance.
“It’s a Ted Striker Airplane movie vibe right now with Musk and Tesla with all his attention appearing to be on Twitter for now.”