Tesla’s stock price, known as the ‘base stock’, plunged … Should we protect the No. 1 position in electric vehicles?

[디지털투데이 추현우 기자] Tesla is rocking from the ground up. Tesla stock, which started at $400 at the beginning of this year, has fallen to $112.71, a quarter cut based on the closing price on the 28th (local time from now). Tesla’s stock price fell to the $108 level at one point on this day, and even the $100 resistance line was in a precarious position.

Tesla’s market capitalization, which reached $1.239 trillion at the beginning of the year, fell to $353.1 billion (about 448 trillion won) on the 28th as well. Tesla’s market capitalization, known as ‘Chancella’, shrank to around 1/3.

The interesting part is that the drop in Tesla’s market cap, which has fallen by almost 70%, is as much as the combined market capitalization of all other automakers.

In other words, with the money lost by Tesla, it was able to acquire most other car manufacturers, including Toyota and Volkswagen, as well as Ford, GM, Mercedes-Benz, BMW, Stellantis, Honda, Hyundai, Kia, Nissan, and Renault. Electrec, media that specializes in electric vehicles, pointed out that this is an example that proves how much Tesla has been overpriced in the market.

On the other hand, unlike in the past, some note that Tesla currently generates more than $ 3 billion (about 3.8 trillion won) of free cash flow per quarter. Given that it is the undisputed number one company in the electric vehicle market and a company worth further development in the future, even if there is a certain bubble, it is still evaluated as positive in terms of value investment.

In fact, Ark Invest, an investment fund led by Cash Wood, is actively buying Tesla shares, which have fallen recently. According to a Yahoo Finance report, Ark Invest was confirmed to have bought an additional 74,862 shares when Tesla’s stock fell to the $156 level. The Arc Invest ETF fund has established itself as a key investment item, with Tesla stock holdings reaching 7%.

The recent drop in Tesla’s share price is due to the overall drop in electric vehicle shipments and the departure of Tesla CEO Elon Musk. This is because it is selling its stake in Tesla to secure funds for an acquisition after acquiring Twitter. CEO Elon Musk is showing signs of being aware of the recent drop in stock prices, such as announcing that he will keep his distance from Twitter’s management, saying, “I will be stepping down as CEO of Twitter before as soon as I find the right person.”

CEO Elon Musk ordered ‘not to worry about the stock price’ through an internal announcement at the end of the year. “Don’t pay too much attention to the craziness of the stock market,” he said. “The market will approve if we continue to perform well.” Additionally, he said, “Tesla will eventually grow to be the most valuable company on the planet.”