[VOTE] Tesla Drops 21% From its High, How Low Can Tesla Fall?
@TigerObserver:
1. Musk has sold 70.18% of Tesla shares promised to bear Tesla Inc Chief Executive Officer Elon Musk has sold nearly $13 billion worth of shares since early November when the world's richest person polled Twitter users about offloading 10% of his stake in the electric-car maker. The billionaire sold another 934,091 shares of the electric vehicle maker worth $906.5 million, U.S. securities filings showed this Monday. He also exercised stock options to buy 2.13 million shares of Tesla, according to the filings. Musk has sold about 11,966,421 Tesla shares since November 8, accounting for 70.18% of its previously committed shares (10%). Here is a string of transactions he has done: 2. Musk has just been Granted asTime Person of the Year 2021. Elon Musk was granted the Person of the Year 2021. Because of that "he provides solutions to survival crises, embodies the possibilities and dangers of the era of technology giants, and promotes the boldest and most disruptive changes in society." He puts satellites into orbit to use the sun; He drives a car of his own creation without using gasoline and hardly needs a driver; He just needs to move his fingers, then the stock market will skyrocket or plummet. Every word affects his large number of believers. He dreamed of conquering Mars and has sold off his wealth recently. Some people may say that Musk is definitely not a good person, and his colleagues in the company also condemned him for being mean and irritable. However, he may be the person who has contributed the most to the environmental problems of the earth. Perhaps it is these contradictory factors that made his achievement today. Elon Musk is the richest man in the world. By now, Musk still added almost $98 billion to his fortune this year, taking it to $253.6 billion, according to the Bloomberg Billionaires Index. 3. After Down 21% From Its High, Vote BULL or BEAR Did the market overvalue the brilliant life of Musk? On the latest trading day, Tesla stock closed down almost 5% at $966.41. Tesla’s stock has lost 21% since a peak in November as Musk has trimmed his stake. Shares of electric-vehicle leader Tesla crossed into bear-market territory. That statement is technically true, but also a little tiring. Stocks, individually, don’t have bear or bull markets. But might come next for investors really means someting,Will Telsa stop going downside after a more 20% drop since it's high? How Low Can Shares Go? Do you want to buy a dip now? Is there more upside to come? Both sides' comments are summarised as follow: The bull case: Tesla's tech and growth still make it a buy. Look at the company's sales growth. In five years, Tesla's quarterly revenue grew at an average year-over-year growth rate of 58%. By comparison, this average rate was nearly 7% for Volkswagen, 5% for Toyota Motor, 3.6% for General Motors, and -1.3% for Ford. The bear case: Tesla's wildly inflated valuation won't last Tesla's market cap is about $1.1 trillion. To justify that in fundamental terms, Tesla would have to be generating somewhere around $100 billion a year in operating profit. If we assume Tesla's cars sell at an average transaction price of $50,000, and that Tesla will be able to get a generous 15% operating margin once it's at scale (which would be the best of any mass-market automaker), then Tesla would have to sell a bit over 13.3 million vehicles a year to hit that operating profit number. That would make it bigger than Toyota, bigger than Volkswagen, bigger than any other automaker ever. That won't happen though.
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