Tesla’s quarterly figures and statements by CEO Elon Musk on the consequences of supply chain problems did not cause much joy among investors in pre-market US trading on Thursday. In an overall market that continues to be characterized by high fluctuations, they fell by one percent to 928 dollars. The technology-heavy Nasdaq 100, which had initially risen significantly the day before after the interest rate decision of the US Federal Reserve (Fed), but had to give up almost all of its gains at the end of trading, is currently expected to be slightly higher at the opening on Thursday.
Tesla earned more in 2021 than ever before in a fiscal year, despite the global chip crisis and supply chain problems. A good 936,000 vehicles delivered represented an increase of 87 percent. In the long term, the company is aiming for annual growth rates of around 50 percent. The operational metrics are exceptional and should be seen as a threat to traditional automakers, jefferies analyst Philippe Houchois wrote. His price target for Tesla is $1400.
No new models 2022
But as there is still a problem in the supply chains, Tesla CEO Musk stepped on the brakes a bit. “We won’t unveil any new vehicle models this year,” he said during a conference call with analysts. This was not so well received on the market. The pessimists are likely to question the lack of new models in 2022, Houchois wrote. Expert Michael Hewson from broker CMC Markets also pointed out that the planned plants in Austin and Brandenburg, Texas, are still in test phases, which suggests that it will probably take until a complete production. With regard to Tesla’s growth targets, this is a problem.
Tesla shares had reached their previous record high of just over $1243 at the beginning of November. An order for 100,000 electric cars by the car rental company Hertz had further fueled the rally – and lifted Tesla into the league of companies with a market valuation of one trillion dollars. After that, especially share sales of CEO Musk put the shares under pressure. On Twitter, he voted on whether to part with a tenth of his Tesla stake. The majority of Twitter users supported this.
Competition is getting tougher
At the beginning of January, Tesla shares came close to their record at $1208, but then slipped significantly with the sell-off in the technology sector to just over $851 at the beginning of this week. Measured against the previous day’s closing price, the market value of a good 941 billion dollars is currently well below the trillion threshold again. However, Tesla is still very highly valued.
Even if the electric car pioneer continues to make record profits, more will have to be done in the future to defend the high valuation, analyst Hewson said. Competition will intensify considerably in the coming years. New competitors appeared, such as Rivian. In addition, car manufacturers such as Ford, General Motors (GM) and Volkswagen would expand their range of products to include electric models.
“We all know that Tesla is overvalued in the market and the price could fall over time. Nevertheless, Tesla will be an extremely valuable and fast-growing company in the long run, as it focuses on continuously adapting to changing market requirements and future needs while meeting the current challenges,” says Alyssa Altman, automotive expert at consulting firm Publicis Sapient. (dpa/swi)
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