According to Tesla's latest stock price, Tesla's closing price reached $194.05 on April 29, 2024, a one-day increase of 15.31%, and Tesla's total market value reached $618.9 billion as of the close, and Tesla's market value rose by $822 overnight, an increase of nearly 594.5 billion yuan at the current exchange rate.
This time, Tesla's stock price finally hardened.
Since July 2023, Tesla's stock price can be said to have been falling and falling, and on July 19, 2023, Tesla's stock price also reached around $300, but after they released their 2023Q2 earnings report, the market reacted strongly and the stock price fell rapidly. Especially since entering 2024, Tesla's share price has fallen more obviously, at the end of 2023, Tesla's stock price has reached $255, but by April 20, Tesla's stock price has fallen to about $142, which is equivalent to Tesla's stock price has fallen by more than 44% since entering 2024.
The reason why Tesla's stock price fell rapidly is mainly related to their performance.
According to Tesla's financial report data for the fourth quarter of 2023, Tesla's revenue in the fourth quarter was $25.167 billion, a year-on-year increase of only 3%, which is far from market expectations.
After entering 2024, Tesla's performance is still not ideal, Tesla's global delivery volume in the first quarter was 387,000 units, a year-on-year decrease of 8.53%, and a quarter-on-quarter decrease of 20.2% compared with the fourth quarter of 2023, which is also the first year-on-year decline in Tesla's deliveries in 4 years.
In the first quarter of 2024, Tesla's revenue was $21.3 billion, down 9% year-on-year, and the net profit attributable to the parent company was only $1.129 billion, down more than 55% from $2.513 billion in the same period last year.
Revenue fell 9%, which was also Tesla's biggest year-over-year decline since 2012.
So why is the decline in Tesla's performance so obvious? The impact of overseas markets is very important, especially the decline in the Chinese market, which has had a big impact on Tesla.
According to Tesla's financial report data for the first quarter of 2024, the revenue of the Chinese market reached $4.6 billion, accounting for 21.6% of Tesla's total revenue, second only to the 45.8% market share of the U.S. market.
However, since the beginning of 2024, the situation in China's auto market has changed abruptly, and many automakers have been competing for market share by cutting prices, and in this context, Tesla's sales have also been greatly affected.
According to some statistics, in the first quarter of 2024, Tesla's sales in China will only be 132,420 units, a year-on-year decrease of 3.6%, which is one of the few car companies to see a decline in sales.
In obvious contrast with Tesla, BYD, Geely Automobile, Changan Automobile, GM-Wuling, Celis, Li Auto, Great Wall Motor, etc. have all seen significant growth.
In the face of oppressive competition from Chinese automakers, if Tesla does not make changes, their market share is estimated to decline further.
Against this backdrop, Tesla is also actively seeking change.
On the one hand, there is a sharp price cut to grab the market.
On April 21, Tesla China announced a price cut, with the price of the Model Y reduced to 249,900 yuan, the price of the Model Y long-range version to 290,900 yuan, and the price of the Model Y high-performance version to 354,900 yuan. The price of the Model S has been reduced to 684,900 yuan, and the price of the Model S PLAID version has been reduced to 814,900 yuan. The price of the Model X was reduced to 724,900 yuan, and the price of the Model X PLAID version was reduced to 824,900 yuan.
After the price cut, Tesla has a certain appeal, which may be able to save the decline.
On the other hand, Tesla CEO Elon Musk personally visited China.
Tesla must know the importance of the Chinese market to them, after all, China is not only Tesla's second largest consumer market, but also their largest production base, so whenever Tesla's performance is not satisfactory, Musk will actively go to China.
On April 28, Musk visited China and met with the leaders of many departments in China, as for what Musk talked about this time, we don't know, but his move had an immediate effect on Tesla's stock price.
After Musk's visit to China, Tesla's stock price soared rapidly, rising to $82.2 billion in a single day, which shows the importance of the Chinese market to Tesla.
The reason why the market reacted strongly to Musk's visit to China is mainly related to two aspects.
One is that China has lifted the ban on Tesla.
Previously, there were some places in China where Tesla was not allowed to enter or drive.
On April 28, the China Association of Automobile Manufacturers and the National Computer Network Emergency Technology Processing and Coordination Center issued the "Notice on the Testing of 4 Security Requirements for Automotive Data Processing (the First Batch)" document, announcing that 76 models of 6 companies including Tesla China, BYD, Ideal, Lotus, Hezhong New Energy, and NIO meet the 4 compliance requirements of automotive data security. high-speed, etc.), the prohibition of driving and parking restrictions on smart cars such as Tesla.
On the other hand, Tesla's autonomous driving may be implemented in China.
During Musk's visit to the Chinese market, it is generally speculated that an important topic is to seek the landing of autonomous driving in China.
At present, Tesla's FSD (Full Self-Driving) has completed various tests and has commercial operation, and has been tested in many places in North America, and judging from the test results, the performance is quite impressive.
As Tesla's second largest market, China currently has more than 1.7 million Tesla vehicles, and if it can land autonomous driving in China, it will be of great help to promote Tesla's revenue and profits.
As for whether Tesla's FSD can be implemented in China, there is no clear answer at present, but it is certain that China has been rolling out various policies to support the development of autonomous driving in recent years, and some regions have allowed pilots on a small scale.
If China really opens up full self-driving in the future, Tesla's performance is likely to usher in the second period of explosive growth, which is estimated to be the confidence for Tesla's stock to soar rapidly after Musk's visit to China.