October 24, 2021

ChineseNews

From native P.o.V.

The market value evaporated 197.8 billion overnight, and the order volume in China was cut in half. What happened to Tesla?

3 min read

On May 30, a Tesla owner in Shenzhen encountered a situation where he could not open his car door during charging. Finally, with the help of enthusiastic citizens, he successfully escaped by smashing the window.

With multiple accidents and a strong attitude towards consumers before, Tesla eventually suffered a backlash from the market.

According to Sina Technology News, according to foreign media citing internal data, due to increased scrutiny, Tesla’s orders for cars in China in May were 9,800, half of the 18,000 in April.

Affected by this news, Tesla dived into the intraday market. As of the close, Tesla’s stock price plummeted by 5.33%, and the market value had evaporated by 30.9 billion US dollars (approximately RMB 197.8 billion).

Respect consumers. Consumers will vote with their feet.

According to data from the Federation, Tesla’s sales in the Chinese market in April were 25,845, of which 14,174 were export vehicles. That is to say, the domestic delivery volume for the entire April was only 11,617, a drop of 67.10% from the previous month.

In addition, Tesla’s market share in China has also fallen from 19% in March to 8% in April. The changes in market share also confirm the changes in consumer preferences. The Chinese market share has reached 21%.

 

Of course, it is not only the Chinese market but also the European market.

According to media reports, Tesla’s share of the European market has dropped from 22% in March to 2% in April, a 95% drop from the previous month.

According to the British “Daily Mail” report, Tesla issued two new recall announcements on June 3, local time, to solve the seat belt problems of some Model 3 and Model Y cars. These problems have affected the United States. 7696 cars.

Faced with plummeting sales and recalls, Tesla’s troubles don’t stop there.
On June 2, the Wall Street Journal exposed a communication record between the US Securities Regulatory Commission and Tesla. The record showed that Musk’s Twitter statement had violated two court orders.

The contradiction between Musk and the SEC has a long history.

In 2018, Musk tweeted that he wanted to privatize Tesla, and then Musk was sued by the US Securities Regulatory Commission for fraud. Subsequently, Musk and Tesla paid $20 million each before settling with the SEC.

According to the terms of the settlement, Musk himself must obtain the approval of Tesla’s lawyers before tweeting.

However, in the next two years, Musk did not take this condition seriously, tweeted as he pleased, and publicly became a platform for Bitcoin and Dogecoin, which stirred up the currency circle. “Bloodstorm.”

SCE clearly stated in its letter to Tesla that Musk continued to violate the treaty after signing the agreement, which is a public mockery of the US Securities Regulatory Commission.

On the whole, if Musk and the US Securities Regulatory Commission continue to deepen the contradiction, then his behavior may bring more trouble to Tesla.

In my opinion, although Tesla has temporarily climbed out of the “quagmire,” its market value has surpassed Toyota to become the world’s largest car company. But for Tesla, which has been “weak” for a long time, the foundation at this time is still precarious. If Musk and Tesla have maintained this attitude, then more consumers will choose to abandon it in the future. Brand.

Although the high market value can solve some of the funding problems, it cannot solve all of the issues. Since the beginning of this year, Tesla’s stock price has fallen for four months, a drop of more than 30%, and the market value has evaporated by nearly $300 billion. If Musk is still so “not doing business properly,” Tesla’s crisis may come again soon.

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