Tesla less and less popular with disappointed investors

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Tesla less and less popular with disappointed investors

Where the share of electric car manufacturer Tesla was previously one of the most popular shares among investors, interest is now declining considerably. This month, the daily trading volume in the stock fell by three-quarters, while the peak on March 1 was still at $ 436 million, according to Bloomberg news agency.

Investors would have been disappointed since the investor day held by Tesla at the Austin plant in Texas. Concerns about the financial markets also play a role in the decline in interest. Data from Vanda Research shows that private investors in particular sell the share more than buy it. “After a brief period in which Tesla’s share price appeared to offer decent value, the stock appears to be back in the expensive realm. As a result, retail investors have taken a step back,” said Finimize senior analyst Paul Allison.

Fall in share value

As a result, the enthusiasm seems to have died down, while the young investors previously bought Tesla shares en masse as soon as there was a little bit of enthusiasm. The disappointment since the investor day has mainly been caused by the lack of an announcement of a new cheaper Tesla vehicle. Since then, the stock is down 6.5 percent, while the S&P 500 Index is up 1 percent and the Nasdaq is up 6 percent.

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The fact that investors have become more cautious is also related to the unrest in the financial sector, particularly in the United States. For example, the Silicon Valley Bank and the Signature Bank collapsed, and other banks are also in trouble. It is extra unfavorable for Tesla, because the share can easily be hit by uncertainty. The value of the stock is currently trading more than 44 times higher than expected earnings, while the average of the Nasdaq 100 stocks have a ratio of 24.

Research supervisor

However, the reduced interest also has to do with the circumstances at Tesla itself. For example, Tesla has also been able to bring the news that the consumer prices of the vehicles could be significantly reduced, as a result of which the profit ratio per car is lower. In addition, the local regulator in the US has launched an investigation into loose steering wheels from the Tesla Model Y.

Analysts have also become gloomier in recent times. For example, three analysts have given Tesla’s share a lower valuation. “That valuation now leaves less room for disappointment,” said Berenberg anlist Adrian Yanoshik when he changed the valuation from “buy” to “hold.”

Tesla CEO Elon Musk during one of the earlier investor days. (ANP / AFP)

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