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What is down stock weight?

Tesla Motors CEO Elon Musk unveils a new all-wheel drive Model S in Hawthorne, Calif. On October 9, 2014.

Lucy Nicholson | Reuters

Shares in Tesla were down as much as 8 percent on Friday morning. Since then, they have recovered to a bottom 4% as the market bounced heavily late on Friday. But the stock is still losing more than 1

5% of its value this year and ended up falling below $ 600 for the first time since Dec. 4.

Here are some of the biggest factors that knocked cult stocks and knocked the world’s richest crown from Elon Musk’s head – the CEO owns roughly 22% of Tesla’s shares.

Fed fear

On Thursday, Fed President Jerome Powell said: “Rising price pressures” and “temporary increases in inflation” may hit the US as the economy reopens after one year of coronavirus constraints, which hit businesses across the board.

The market is now concerned that interest rates will rise and the government will not act proactive or even out of control. Bond yields soared

This has resulted in a broader correction in technology stocks, which are valued on the assumption that future cash flows will grow heavily. As inflation rises, the value of future cash flows falls, as previously reported by CNBC.The Nasdaq 100 list of the 100 largest non-financial stocks on the exchange is down about 8% from its historic high to Three weeks ago

This affects most tech giants, for example, Apple dropped from about $ 129 to $ 121 a year ago, and Netflix dropped from about $ 523 to $ 516, but Tesla’s drop was much higher so far. Now

Rivian’s R1T Pickup


The Bulls acknowledge the race.

Some of Tesla’s biggest and biggest sound advocates have taken a handful of stocks and are finally starting to acknowledge the onslaught of electric car competition as a real challenge for Tesla.

For example, Ron Baron sold 1.7 million shares of Tesla and invested in two of the company’s biggest potential competitors, GM-owned Cruise and Amazon-backed Rivian, while saying he expected Tesla shares. It will eventually increase to 2,000 coins.

Steve Westlee, a former Tesla board member, said on CNBC’s Power Lunch this week that while he was still going strong, “Tesla will not be the king of electric hills forever,” he added. “They’re getting competitive from every sector, they’re going to be competing twice.”

Automakers, including Ford and Volkswagen, enjoyed early success with sales of their electric vehicles, including the Mach E and ID 3, against Tesla models in the United States and Europe.

In the meantime, the upcoming EV, which includes Ford’s all-electric F-150, Lucid Air, Rivian’s electric SUV and trucks, among others, is thrilling. Porsche yesterday showed off a production version of the Taycan Cross Turismo and said it will go on sale in the United States this summer as a $ 90,000 EV, which is a more affordable and practical version of its EV. Porsche, that is Taycan.

A close-up of the CPU socket and the motherboard lying on the table.

Narumon Bowonkit Wanchai | The Moment | Getty Images

Partial shortage

A shortage of semiconductors has forced most automakers to temporarily shut down parts of their production lines at their factories, and Tesla is no exception.

Tesla CEO Elon Musk accepts the company’s California Fremont plant temporarily shut down due to In a February 25 tweet he said it would shut down for just two days. But it didn’t make it clear if there was a partial shutdown. Some lines will continue.

Tesla had previously warned in calling and filing Q4 2020 that a chip shortage could hinder vehicle production targets in the first half of 2021.

CFO Zachary Kirkhorn told investors that in the first quarter of 2021:

“[Model] Production of S and X will be low due to the transition to redesigned products. In addition, we are working hard to address the global shortage of semiconductors as well as port capacity, which may have temporary effects. “

If Tesla does not manufacture the vehicles in large quantities due to shortage of parts or delays in shipping parts from abroad to factories in the United States, the company will not generate as many regulatory credits as needed. Tesla sells these environmental credits to. Other automakers, which have been a historically successful way of making a profit.

A freight hub in the Gruenheide region, east of Berlin, Tesla plans to build a new European Gigafactory in a nearby forest.

Patrick Pleul | Alliance Images via Getty Images

Higher cost

Cost controls have been in CEO Elon Musk’s thoughts for years.

In December 2020, he wrote in an email to all Tesla employees, “Investors give us a lot of credit for future profitability. But if whenever they conclude that it will not happen, our stocks will be crushed immediately. Souffle under the sledgehammer! “

But, at the same time, Tesla is in a phase of a potentially costly expansion.EV maker is building a factory in Austin, Texas, in Brandenburg, Germany, and expanding production in China. It has also been working on renovations to Fremont facilities, including a paint shop, a factory area where cars have been painted.

Musk also had ambitions that Tesla would mine its own lithium in the country. And increased production of Tesla’s own battery cells at the pilot plant in Fremont.

In addition to these efforts, the company is in the middle of costly recalls and may face more, whether voluntary or compulsory. Most of these voluntary recalls in China and in the United States, Tesla recalled Model S and X vehicles that had touch display failures.

–Jessica Bursztynsky contributed to this report.

Correction: Tesla was down 3.78 percent on Friday.

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