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FT editor Raula Khalaf selected his favorite stories in this weekly newsletter.
Tesla stands in all Trump’s business for injury to skids. The share price of Elon Mask’s electric vehicle company has dropped from about $ 480 to $ 282 last week from post-elections. This fall has been so exhausted that last Thursday the American Federation of Teachers, US Union, $ 4TN members with $ 4TN for retirement investment, six big money managers – Blackrock, Vanguard, State Street, T. Row Price, TIAAA – Calling T -to -to -to -to -toa Rewrite their position In the organization.
As AFT President Randy Wengarten writes, Tesla Stock is submerged faster than Quicksand’s cybertrack “, especially European sales have fallen from a steep erect. In the fourth quarter of the year in the company’s latest financial statements, the total profit margin of the year goes down 138 Basic points, the operating income decreases by 23 percent of the year.
Sales in California – One of the main markets of electric vehicles – according to the registration of vehicles published by the California’s New Car Dealers Association, the fourth quarter of 2021 has decreased by 5 percent. Of course, it compares about 60 percent of the sales dip in January in Germany year after year.
Some response is political. The gestures that look like the Nazi Salam do not go well with the Europeans, or do not call the education department to resonate with teachers. However, if the musk itself has not had so much polarization, the company’s share price “has become completely divorced from the basic issues”, because the JP Morgan analysis kept it just a month ago. What is more, because of the greater fall of the Tesla brand because of the greater collapse of the brand is overlap America Inc.
Trump has extra promotion and under -dered (remember the first month in his office? Chinese Electric Vehicle Manufacturer Bidi 2024 increased sales estimate by about 20 percent, even as Tesla start as its first full year report Reduces the supply of vehicles From the 25thThe Vertical integration, supply chain ownership (byd produces its own battery) and by comparing it to rivals through it, the result of reduction in its expenses dramatically Scale economyThe
This is the magic formula of the Chinese art policy – the constant repeat at the scale increases productivity and reduces the cost. State subsidies in areas like electric vehicles support the expansion. However, post-biden, in the United States, there is no industrial policy in clear technology. Finishing Federal Support to create Trump charging stations, it is a one that greatly benefits Tesla and will probably reduce tax incentives for electric vehicles. The musk may be able to participate in the cabinet meetings, but large oil at the end of the day The Republican Party runs And there is no interest in supporting Trump’s clear energy transfer. It’s not good for any American organization to try to overcome the Chinese national champion.
Tesla focuses on becoming a premium brand, not on the price. That’s the Apple strategy. However, to charge a premium you should see the market as a specific luster and a cach. The political antics of the musk has underestimated its brand in many parts of the world. Sales were destroyed in Europe after announcing support for the far-right AFD Party in Germany.
A Dutch pension fund is divided from Tesla in protest in early January. Tesla owners of France, Norway and UK are spreading bumper stickers that are written: “We knew we knew that Elon was crazy.” In Germany, people’s protests in Tesla factories are common topics (I have recently received an invitation for one in Brooklyn). All of these have reduced the value of Tesla price and its high technology, sustainable brand. According to Stephel analyzer Stephen Zengoro, Tesla’s Net Favility rating, which measures consumer perception of a brand, is closer to all time.
The fall of Tesla is a greater feeling that the US equity exceptionalism, especially in technology, may end. Some of these have come down from China to compete in rigorous competition (DEPSEC surprised US artificial intelligence stocks) and technology decopling inevitably would inevitably shut down the big markets out of big markets. Tesla sales are lagging behind in China’s overall market growth, where controllers are slow to approval for the self-driving software of the musk. In terms of the politics of US-China relationship, it is hard to imagine that Tesla will be able to move forward than competitors like Weemo in regions like autonomous cars.
Meanwhile, competitors are coming together in the country and abroad to threaten Tesla’s leadership in EV infrastructure. Mercedes-Benz, BMW, GM, Stelantis, Honda, Hondai, KIA and Toyota have launched the rival charging station initiatives in the United States, which plans to deploy 5,7 stations by 20. AFT says “Tesla has created a direct challenge for domination”.
Money managers will listen to union calls to review their location in Tesla? I hope so. The frequent announcements of the musk about the ambitious projects that will probably convert the organization (I am not betting on the success of Humanoid robots outside Japan) have reckless air. His competitive pay package is both obscene and uncontrollable. As mentioned in AFT, a JP Morgan Analyst has $ 135 a target for Tesla. If the share price decreases, the price drop will reach 64 percent year after year.
This would be a fatal hit for investors. I used to rank a Tesla like the United States nowadays, as sales.
