Tesla‘s share price, which has been falling for more than a month, was hit hard again on May 20 local time, once falling more than 10%. As of the close, Tesla‘s share price was $663.9 per share, down 6.42%P align = “center” source: China stock market news
On the news side, Tesla seems to have fallen out of favor with Cathie wood. According to data released by Bloomberg, on May 19 local time, electronic product manufacturer roku Inc. replaced Tesla as the first stock in the market value of Mujie flagship fund arkk.
Mujie sold Tesla shares for four consecutive quarters
According to the latest statistics of Bloomberg, Tesla has been the first heavyweight stock of Mujie’s flagship arkk in almost all time periods since at least 2017. However, this situation changed on May 19 local time. As of the closing of the day, arkk held about $703 million of Tesla shares, while the market value of roku Inc. was about $717 million, surpassing TeslaP align = “center” source: Bloomberg
Meanwhile, according to statistics compiled by Bloomberg, the investment company ark investment founded by Mu Jie and its flagship fund have sold Tesla shares for at least four consecutive quarters. As of the end of March, the company held nearly 1.59 million Tesla shares, far lower than the nearly 5.79 million shares in the same period last year.
Although sister Mu still said publicly that she did not lose confidence in Tesla, Tesla’s share price is getting farther and farther away from the $4600 that sister Mu once shouted.
Data show that Tesla’s share price continued to fall after hitting a stage high of $115287 on April 5. As of the closing on May 20, it fell by more than 40% in 33 trading days, and the total market value evaporated by more than $450 billionP align = “center” source: China stock market news
was “kicked out” of the S & P 500 ESG index
On May 19 local time, Dan ives, an analyst at wedbush, a Wall Street investment bank, lowered Tesla’s target price from $1400 to $1000, a decrease of nearly 30%.
For the target price reduction, Dan Ives said that Tesla is facing more production slowdown and supply chain bottlenecks caused by the epidemic. In addition, Musk’s acquisition of Twitter is another potential adverse factor for Tesla’s share price. At the same time, Dan Ives believes that “Tesla faces a lot of resistance under the unstable macro background”.
On May 13, a week before the target price was lowered, Dan Ives just rated Tesla as “stronger than the market”, with a target price of $1400.
In addition, on May 18 local time, standard & Poor’s Dow Jones index announced the annual routine index adjustment on its official website, and Tesla was removed from the S & P 500 ESG index by standard & Poor’s Dow Jones index. Margaret Dorn, senior director of North America and head of ESG index of S & P Dow Jones index, said that Tesla’s scores in environmental, social and governance standards remained “quite stable” over the past year, but its ranking fell compared with its improving global peers.
Margaret Dorn pointed out that the poor working environment and racial discrimination exposed by Tesla Fremont factory, the handling of automatic driving related casualty investigation, and the lack of low-carbon strategy and business code of conduct are all detrimental to it. At the same time, he said: “although Tesla and other companies may not be included in the index this year, they will have the opportunity to be included in the review again in the next few years.”
After being kicked out of the S & P 500 ESG index, Tesla founder and CEO musk expressed dissatisfaction and said on Twitter: “ESG is a heinous scam! S & P Dow Jones index company is shameful”.
“niusan” shouting repurchase
Leo KoGuan, a billionaire known as Tesla’s “best retail investor”, called on Tesla to announce a $15 billion stock repurchase plan to save the falling share price.
Leo KoGuan said that in view of the continuous decline of the company’s share price, Tesla should immediately announce its plan to buy back $15 billion of shares. At the same time, Tesla should use its free cash flow to invest in repurchase, so as to avoid using the company’s existing $18 billion cash reserves.
In the face of many defections, falling stock prices and “niusan” calling for repurchase, musk also responded on May 19: “I’m thinking about Tesla all the time.” Faced with the question of whether he was distracted by twitter, musk said: “I only spent less than 5% of my time buying twitter.”
