International
Entered2024.04.23 03:22 Modified2024.04.23 03:22
Wall Street report: “Chinese business may reach break-even or negative” Shares of American electric car company Tesla fell more than 5% during the day on the 22nd (local time), hitting a new 52-week low . At 9:32 am eastern time on the New York Stock Exchange, Tesla’s stock price recorded $138.80, down 5.60% from the previous trading day, breaking a 52-week low.
It has fallen for 7 consecutive trading days since the 12th, and is the first time that Tesla’s stock price has fallen below $140 since January 25 of last year.
As of this afternoon, it has reduced its decline slightly and is trading at around $142. Tesla’s stock price has fallen more than 42% this year.
The drop in stock prices on this day was influenced by Tesla’s price cutting policy implemented last weekend.
On the 20th, Tesla reduced the selling prices of its three flagship models by $2,000 (about 2.76 million won) each in the US market, and on the 21st, it also reduced the selling prices of all models by 14,000 yuan (about 2.7 million won) u won) ) in China. American media believe Tesla cut prices due to inventory build-up due to sluggish sales in the first quarter.
However, the lower the price, the lower the profit margin, raising investor concerns.
Model Y, the flagship product, was discounted to 249,900 yuan (about 47.6 million won) in China, making it the cheapest in over five years. Chinese media outlet Securities Times pointed out that Tesla announced earlier this month that it would raise the price of the Model Y by 5,000 yuan, but later changed its policy again as Chinese companies lowered their prices one after another , saying, “Tesla hasn’t talked about an increase in less than a month amid global competition for new energy vehicles “I couldn’t hold on,” the report said.
According to Bloomberg News, Wall Street investment advisory firm Evercore ISI analyzed in a report today that Tesla’s Chinese business “may now reach the break-even point or even the red.”
In particular, Lixiang (Liotto), an electric car company considered to be Tesla’s closest rival in China, recently reduced the prices of its entire line by 6-7%, including lowering the starting price of its large SUV ‘L7’ to 301,800 yuan. .
In addition, BYD, China’s No. 1 electric vehicle manufacturer, has also reduced the prices of its popular models, and the ‘Seagull’ hatchback is currently being sold for less than $10,000 (about 13.81 million won) .
The price war in the electric vehicle market in China has continued since the end of 2022 when Tesla started cutting prices, and is currently considered to be reaching a bloody battle.
Wall Street predicts that Tesla’s operating profit in the first quarter of this year will fall by 40% compared to the same period last year and that sales will decline for the first time in four years due to the decline in the Chinese business.
Tesla plans to announce its first quarter earnings on the 23rd.
Earlier this month, Tesla announced that deliveries (sales) in the first quarter of this year were down 8.5% compared to the same period last year. Accordingly, on the 14th, the company began reducing its workforce by more than 10% at its global workplaces to reduce costs.
/happy news
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