Plunged nearly 700 billion yuan overnight What happened to Tesla?

Drive China January 28, 2022 news

On January 26, Tesla announced the fourth quarter of 2021 earnings report, the company's fourth quarter revenue reached $17.72 billion, an increase of 65% year-on-year; net profit of $2.321 billion, an increase of 760% year-on-year; earnings per share of $2.05, compared with $0.24 in the same period last year; adjusted earnings per share of $2.54, all of which were better than market expectations.

Just after Tesla announced its earnings report, Tesla plunged nearly 700 billion overnight! As of Thursday's close, Tesla shares had plunged 11.55 percent, wiping out more than $100 billion (about 633 billion yuan) in market value. Currently, Tesla has a market capitalization of $832.6 billion.

This is mainly due to the fact that in the fourth quarter conference call held on Wednesday, Musk publicly stated that new models will not be produced in 2022 under the influence of chip shortages. That means the launch of Tesla's electric pickup, the Cyberlruck, will be delayed again, with the model scheduled to hit the market as early as 2021.

Musk also said that the $25,000 small electric vehicle program has not yet begun, but eventually the plan will be implemented, meaning that no $25,000 cheap model will be developed in the coming year. In addition, Musk also said that due to supply chain issues such as chip shortages, car production was limited last year, and these factors are expected to remain in place in 2022 and will not be alleviated until next year.

In addition, at present, the US auto safety regulator is reviewing complaints about the safety performance of Tesla's "fully autonomous driving" software.

Affected by the above public news, this disappointed many investors who were expecting Musk to "update the product roadmap", and the stock price began to fall.

However, Driving China believes that in the context of a good prospect for new energy, Tesla is currently a dominant and long-term optimism.

From the perspective of the whole year, Tesla achieved total revenue of $53.7 billion in 2021, an increase of 71% year-on-year; and achieved a net profit of $5.519 billion, an increase of 665% year-on-year.