Tesla's stock price rebounded strongly.
On March 18th, major technology stocks in the United States collectively rose, with Tesla opening higher and rebounding strongly, closing up 6.25%, the largest daily increase in a month, at $173.8 per share. The company's market value reached 553.5 billion US dollars, with an overnight increase of over 32.6 billion US dollars (approximately RMB 234.6 billion).
Tesla's prices in Europe and America have risen, with institutions reporting that its stock price may rebound by 77%
On the news front, Tesla announced last Friday that starting from April 1st, the prices of all Model Y cars in the United States will increase by $1000. Subsequently, Tesla announced that starting from March 22nd, the prices of Model Y vehicles in some European countries will increase by approximately 2000 euros.
Many institutions have set higher expectations for Tesla.
Since 2024, Tesla's stock price has fallen by over 30%. Independent research firm CFRA analyst Garrett Nelson stated that Tesla's 2024 stock price crash is just a correction, and its price will eventually rebound to $275.
Nelson stated that Tesla still has 68% room for growth and is a star in the predicament of electric vehicle manufacturers.
He believes that although the US electric vehicle industry is facing severe demand shortages, Tesla is well prepared to remain resilient under any industry pressure and is expected to further expand its market share in the coming years as competitors decrease.
According to Dan Ives, an analyst at the well-known investment bank Wedbush, the market is overly bearish on Tesla, and Tesla's stock price may rebound by 77% in the next 12 months. "We believe that due to Tesla's demand becoming more stable in the remaining period of 2024, the price reduction is slowing down, and battery costs and production are showing strong cost-effectiveness. In addition, the company plans to launch a Model 2 model priced below $30000 next year.". These are all positive signals of stock price recovery
It is worth mentioning that recently, Casewood, CEO and Chief Investment Officer of Ark Invest, spent tens of millions of dollars to buy Tesla, which is now one of Ark Invest's heavy holdings.
Insufficient demand for electric vehicles still concerns the market
However, against the backdrop of reduced subsidies for electric vehicles in Europe and America, as well as a slowdown in market demand, some analysts still do not have confidence in Tesla.
Deutsche Bank analyst Emmanuel Rosner believes that Model Y vehicle inventories remain high, and this round of price hikes is only to stimulate sales in March, not driven by demand.
In the Chinese market, Tesla's demand has also declined due to seasonal factors and escalating price wars. According to data from the China Association of Automobile Manufacturers, Tesla China's wholesale sales in February were 60400 vehicles. Compared to the 74400 vehicles in the same period last year, it has decreased by 18.9%, and the month on month has also decreased by 15.5%.
Unlike the price increase in the European and American markets, Tesla China announced a price reduction on March 1st, with a comprehensive discount of up to 34600 yuan.
Recently, Wells Fargo Bank significantly lowered its target stock price from $200 to $125, calling it a "growth company without growth.". Wells Fargo Bank predicts that Tesla's sales will remain unchanged from last year and will decline in 2025.
Meanwhile, renowned Tesla investor and CEO of Geber Kawasaki Wealth Management, Ross Gerber, criticized Tesla CEO Elon Musk for saying that to "save" Tesla's plummeting stock price, he must either change his behavior or be replaced. Gerber referred to Musk's behavior on social media as "Tesla's poor advertising.".
Musk's unique approach has attracted a large number of fans to Tesla, but it has also been a constant source of criticism from investors.
According to Global Times, the Wall Street Journal in the United States has repeatedly reported that Musk "frequently uses the drug ketamine (a depression treatment drug)," which has raised concerns about his company's operations. On March 18th, in an interview with CNN's renowned anchor Don Lemon, Musk once again responded to this question.
He stated that the medication he took was prescribed by a real doctor and only took very small doses about every other week.
Musk also believes that investors are most concerned about execution, company performance, and operational status. Ketamine can alleviate emotions, help maintain work efficiency and execution, "so from an investor's perspective, no matter what I'm taking, I should continue to use it."