Since entering 2024, Tesla's stock price has been declining.
On January 25, local time, Tesla's stock price fell 1213% to close at 182$63 shares, the total market capitalization evaporated 8011.1 billion US dollars (about 570 billion yuan).
The reason for Tesla's sharp fall is related to its weaker-than-expected earnings report.
According to the financial report data, Tesla's total revenue in 2023 will be 967US$700 million, a year-on-year increase of 19%, a record high; Net profit was US$15 billion, up 19% year-on-year. The gross profit margin is declining, and the gross profit margin in 2023 will be 182%, down 735 percentage points.
In the fourth quarter of 2023, Tesla achieved total revenue of 251$700 million, up 3% year-on-year, below market expectations of 258$700 million; Net profit was 79US$2.8 billion, up 115% year-on-year. Gross margin slipped to 17 in the fourth quarter6% versus the consensus of 183%, the lowest since 2019.
In addition, some of Musk's remarks at the earnings conference also disappointed investors.
Musk expects Tesla's sales growth to slow down this year, and the Dojo supermath is "a long-term project with a low probability of success."
It is reported that in June last year, Tesla announced that they would independently develop a supercomputer platform called DOJO, aiming to accelerate the development of autonomous driving technology.
The Dojo supercomputer platform will be powered by Tesla's in-house developed neural network training chip, D1, which uses an advanced 7nm process technology and has more than 50 billion transistors and 354 training compute nodes.
The commissioning of the Dojo supercomputer platform will enable Tesla to process large-scale Full Self-Driving (FSD) data more efficiently and accelerate the training and optimization process of autonomous driving models.
Dojo supercomputing was given high hopes by Tesla, and Musk's remarks made investors lose confidence.
However, some investors are optimistic, with one X user saying: "Those who think Elon has a negative attitude towards the DOJO will not say that Elon has a 'low probability of success'." He said the same thing when SpaceX and Tesla were startups. ”
Musk responded: "At the beginning of Tesla and SpaceX, I estimated their probability of success at less than 10%. People told me we could fail, but that didn't stop me because I already agreed with them! ”
At present, a number of investment institutions have lowered Tesla's target price.
Goldman Sachs lowered Tesla's price target to $220 from $255; UBS lowered Tesla's price target to $225 from $229; Wells Fargo lowered Tesla's price target to $220 from $223; HSBC lowered its price target to $143 from $146.
Dan Ives, an analyst at Wedbush Securities, a well-known U.S. investment bank, said in the latest report that the company's earnings meeting "left Wall Street with few answers, many questions, and again frustrating."
It is worth mentioning that back at the beginning of this year, Craig Irwin, an analyst at Roth Capital, warned that Tesla's share price was at risk of being seriously overvalued.
There's nothing about Tesla that Toyota doesn't have. If it only sells a fraction of the cars, why is the deal** so many times higher than Toyota? I'm bearish because I think it's grossly overvalued".
Craig Owen gives a Tesla price target of $85.
Musk has said, "Tesla is an AI robotics company, although many people think of it as a car company." ”
Whether Tesla's stock price will continue** depends on whether investors still have confidence in the company's future prospects.