Tesla's stock price fell nearly 5%, with a market value evaporation of over 180 billion US dollars.

On October 30th local time, the three major US stock indexes collectively rose. Tesla fell nearly 5% against the trend, with its stock price falling below $200, hitting a new low since May. It also became the only company in the 20th National Congress of the Communist Party of China that closed lower on Monday.

Industry analysis suggests that the sharp drop in Tesla’s stock price is likely related to the financial report released by its battery supplier Panasonic on Monday.

Panasonic said that demand for high-end electric vehicles in the North American market is slowing down, so it lowered its performance guidance for the energy department, which produces batteries for automakers such as Tesla.

Since the release of the third quarter financial report on October 17, Tesla’s stock price has fallen several times, falling by about 23% in 9 trading days, evaporating more than 180 billion US dollars in market value, and Musk’s wealth has shrunk by nearly 41 billion US dollars.

In the third quarter, Tesla’s revenue and net profit both fell short of expectations, and its gross profit margin continued to decline. Wells Fargo analysts previously predicted that Tesla’s profit margin decline would continue into the fourth quarter and could fall below 15%.

Morgan Stanley analysts, who have long been optimistic about Tesla, also stated that Tesla’s Q3 financial report expressed a pessimistic attitude towards future profitability and demand, which is a warning for the entire electric vehicle industry.

As an investor, do you think Tesla is still worth buying?

Tesla announced its third-quarter results on October 18th Eastern Time. In terms of profit margins that investors are concerned about, the company’s gross profit margin for cars excluding regulatory credit sales was 16.3%, lower than Wall Street’s expected 17.5%. On that day, Tesla’s stock price continued to fall and finally closed at $242.68, a decrease of 4.78%.

During the reporting period, Tesla’s total revenue was $23.35 billion, lower than the expected $23.90 billion on Wall Street, an increase of 9% year-on-year, the lowest growth rate of the year; Net Profit was $1.853 billion, a decrease of 44% year-on-year; adjusted earnings per share were 66 cents, lower than the expected about 70 cents.

The main reason for the decrease in gross profit margin comes from the price reduction of cars. Tesla’s price reduction measures have damaged the company’s revenue growth, while costs are rising, resulting in less and less profit per car.

Even with the expected decline in performance, many international analysts still give Tesla’s stock a “buy” rating.

Profit margins may have bottomed out, which is one of the reasons why analysts are optimistic about Tesla.

Piper Sandler analyst Alexander Potter lowered Tesla’s target price from $300 per share to $290, but still gave the stock a “buy” rating. He hopes Tesla’s profit margin can bottom out before investors become more interested in the stock.

Wedbush analyst Dan Ives agrees that investors will “highly focus” on profit margins and suggests that investors may have prepared for Tesla’s weak third quarter. Ives expects the company’s profit margin to bottom out in the third quarter and rates the stock as a “buy” with a target price of $350.

In addition to considering profit margins, Canaccord analyst George Gianarikas believes that although the automotive market is unstable and prices have been lowered this quarter, Tesla’s demand is relatively healthy. He rated the stock as a “buy” with a target price of $293.

At the same time, many investors are optimistic about Tesla.

The Czech National Bank purchased 163,682 shares of Tesla stock in the third quarter, bringing its investment to 482,573 shares. After a 65% drop in 2022, Tesla stock soared 103% in the first nine months of this year.

In addition, the world is moving towards Renewable Energy.

Tesla’s long-term goal is to launch an affordable electric car for middle-class families and individuals. It is expected that electric pickup trucks and updated Model 3 will promote Tesla’s car sales growth.

Musk has said that he has “very high confidence” in the long-term value of Tesla. He believes that the company’s value can reach 5 or even 10 times its current size. He also suggests holding Tesla like Buffett Value Investment, saying that Tesla has long-term investment value and buying it if the market panics.

Although Tesla’s stock price fell 18% after the performance report was released on October 18th, investors may find that Musk still manages stable operations, and the recent sell-off may be a good time to buy Tesla’s stock decline.

How to buy Tesla stock?

To buy Tesla stocks, you first need to have a “ticket”, which is a US stock account.

The easiest way is to open an account with a securities firm online. It can be successfully opened within a few minutes, and then funds can be transferred to purchase Tesla stocks.

Opening a US/Hong Kong stock account may face various difficulties such as high thresholds, difficult account opening, limits, and slow deposits and withdrawals. Here, I recommend a professional US/Hong Kong stock trading platform - BiyaPay.

As a global multi-asset trading wallet, online registration is convenient and fast. It supports real-time online trading of US/Hong Kong stocks, and can directly exchange USDT for US dollars or Hong Kong dollars to trade US/Hong Kong stocks on BiyaPay. Compared with traditional securities firms, this not only saves the cumbersome deposit and withdrawal process, but also saves the loss of exchange rate and handling fees in the deposit and withdrawal process, achieving the goal of investing in global markets with one account and one fund.

In addition, if you already have a brokerage account and an overseas bank account, you can also use BiyaPay as a tool for depositing and withdrawing funds from US/Hong Kong stocks. Recharge USDT and exchange it for US dollars or Hong Kong dollars, withdraw it to your personal bank account, and then deposit it into your brokerage. There is no limit for quick repayment, and the same-day remittance is received on the same day. This solves your account opening and deposit problems.

Okay, the above are some personal opinions for your reference, not investment advice. If you have any questions or suggestions, please feel free to contact me at any time. Wish you all a happy investment!