One of the small savers’ favorite companies, Tesla has been seen as one of the world’s most important, and most valuable, companies. The CEO Elon Musk has become one of the world’s richest men thanks to his pioneering and luxurious electric car.
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The economist: Tesla is in crisis
But the crown has fallen on the forehead of the electric car king. On Wednesday, a report was presented that fared significantly worse than analysts thought.
– Tesla is very much in a kind of crisis, says Frida Bratt.
Lost a third of its value
She is a private economist at Nordnet and explains how the electric car conundrum may have gone from a top-listed super share to a low-valued pariah in 2024.
During 2024, the share has fallen by a whopping 36.14 percent. It is during a period that the stock market has generally performed at a record high, and the high-tech giants in particular have been cash cows.
From pioneer to laggard
– From having been the obvious number one in the electric car market with a CEO in Elon Musk who was both a pioneer and a visionary, the competition is now increasing. That is the big problem, says Frida Bratt.
Chinese and other challengers are often cheaper than Tesla, which has focused on creating an electric car fleet for the Western world’s upper middle class.
– With increased competition from, above all, China, price pressure will also come. Now they want to maintain their position through price pressure on existing models but also by launching a cheaper model on the market, says Frida Bratt.
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Doom for Elon Musk’s empire?
But that’s easier said than done, and the market seems ruthless in its assessment of Tesla as the leader in the electric car market. Some even talk about the downfall of the electricity company, or at least a 90 percent loss.
– Whether they will succeed, of course, remains to be seen, but if you own the stock now, you have already seen that a lot of misery has been priced into the price that was slaughtered this year, says Frida Bratt.
The hedge fund manager Per Lekander who was interviewed by CNBC is not as cautious. The stock is about to be retired, and the company may go bankrupt, he believes.
Over 90 percent overvalued
“This was the beginning of the end for the Tesla bubble – which was probably the biggest stock market bubble in modern times,” he told CNBC.
He believes that Tesla stock costs more than ten times more than it is worth.
– Actually, it is not even enough that it dives 90 percent from current levels, Leksander adds The business world.
Should you take the money and knit?
So what to do if you have money saved in Tesla?
– Anyone who wants to take the money and run would have been wise to do so when the stock was booming, but it is easier said than done to dot a price stop and it is easy to have hindsight, says Frida Bratt.
Instead, the small savers may do best to hope that Tesla succeeds in going public.
Instead – wait for a new top, take the money and stick?
– Now one can perhaps rather hope that Tesla will get out of the crisis and that luck will thus turn. But we don’t know that, and Tesla is a stock that can hit hard in a short time in both directions – as a shareholder, you have to be prepared for that, says Frida Bratt.
The business world told us that the production of the new, cheaper Tesla model could start production as early as 2025. Whether it will take off remains to be seen, but the market seems to have trusted what Elon Musk promises.
There may be lightening
The stock rose 13.3 percent when the news came Wednesday on Elon Musk’s announcement.
One that seems to believe in the stock is Bank of America, which raised its target price after the report.
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