What’s Going On With Tesla Stock Price Plummeting?

What’s going on with Tesla stock price plummeting? Dow and Nasdaq are also buzzing. Shares of Tesla, an American electric car company, fell sharply during the day on the 5th (local time). On the New York Stock Exchange, Tesla is trading at $181.81, down 3.25% from the previous day as of 1:16 PM (ET) on this day. At one point this morning, it fell to 6.8%, but the decline is decreasing. It was analyzed that the decline in Tesla’s stock price on this day was influenced by media reports that German software company SAP announced that it would no longer purchase Tesla’s electric vehicles.

According to Reuters and Market Watch, the German daily newspaper Handelsblatt quoted a company official as saying that SAP, which owns 29,000 vehicles, will not purchase Tesla vehicles. The company reportedly cited the fact that Tesla’s car prices change frequently, making it difficult to make a purchase plan, and that Tesla does not meet its vehicle delivery schedule on time as a problem.

In addition, investment bank Piper Sandler lowered its target stock price from $295 to $225, predicting that Tesla will deliver 1.93 million units this year, about 7% more than last year. Previously, Wall Street analysts on average expected Tesla’s delivery volume this year to be 2.2 million units, about 20% more than last year, but Piper Sandler’s new forecast is much lower than this.

Tesla’s stock price fell 27.9% as of the 2nd this year. The market capitalization shrank from $791.41 billion (about 1057 trillion won) at the end of last year to $578.2 billion (about 772 trillion won) currently. In addition to recent signs of a decline in demand for electric vehicles, Tesla’s stock price has been in a downward trend since Tesla CEO Elon Musk announced in an earnings announcement on the 24th of last month that this year’s growth rate will be significantly lower than last year.

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