Tesla CEO Elon Musk has affirmed his confidence in the electric carmaker by stating that it will be great in the long run, despite the stock plunge continuing to weigh on the stock.
Tesla (NASDAQ: TSLA) stock has fallen sharply in 2022, along with many other auto and tech stocks. On Tuesday, the decline continued as shares hit levels as low as $156.91. At the time of writing, the shares were trading at $161.35, down 3.86 percent on the day.
Amid a broader market decline, Tesla shares have been hit by several external factors this year. Along with Musk’s $44 billion acquisition of Twitter earlier this year, which has divided Tesla loyalists, the company has seen increased competition as more models and manufacturers enter the sector, and Supply chain issues still stem from the COVID-19 pandemic.
Once worth $1 trillion, Tesla has declined to a valuation worth about half that. While the second most valuable car company, Toyota, is only worth around $197 billion, Tesla still holds the title of the most valuable car manufacturer on Earth.
Musk: Tesla will be great in the long run
In a response to WholeMarsBlog, Musk said: “Tesla will be great in the long run, but it doesn’t control the macroeconomic tides.”
Tesla will be great in the long run, but it doesn’t check the macroeconomic tides
— Elon Musk (@elonmusk) December 13, 2022
From a macro perspective, Musk is right. Tesla is up more than 600 percent in the last five years. Over the past year, a fifty percent decline in stock price has been the much more glaring trend among the media, but the company hasn’t been the only automaker to experience a difficult 2022. However, the debate on what to do with the shares is still ongoing. in.
Tesla Stock: Buy or Sell
Discussions among members of the Tesla community have been polarizing, with many die-hards sticking with their plan to own shares. Jason DeBolt, who is one of the most notable Teslanaires, retired from his corporate job at the age of 39 thanks to his earnings through Tesla stock. Although the company is still hit by a broader market downturn, DeBolt has considered loading up even more shares.
I’ve lost $11 million in $TSLA since last year and I’m more bullish than ever on Tesla.
I am seriously considering selling my house to buy more shares. like wtf
Tesla will continue to grow revenue by 50% per year (as it has since 2014), and profits will grow even faster than that.
— Jason DeBolt ⚡️ (@jasondebolt) December 8, 2022
Others, however, are unwilling to ride the wave and have decided to sell due to market conditions or personal opinions about Musk.
Cancel my @Tesla Model X order that went unfulfilled for over a year and sell my TSLA stock. They need an opt-out that simply says “Elon Musk.” I will not give my money to someone who no longer shares the same values that I hold important. He probably never held them. pic.twitter.com/yhxSgJUxZw
— Tom Kulzer (@tkulzer) December 13, 2022
Tesla performance in 2022… and others
Tesla’s 59.68 percent decline in 2022 challenges all the things the company has accomplished over the year. It has opened two new production facilities, expanded global production capacity to more than one million vehicles, and is set to deliver more than one million cars in a year for the first time.
Tesla launched the Semi last month, adding to its penetrable markets through commercial projects. The company still overwhelmingly leads the US market share for electric vehicles, so what’s the problem?
Tesla, while it has a lot more to worry about than just building cars and power systems, isn’t the only car company experiencing a downturn this year. Tesla shares are down 59.88 percent this year, but here’s how others fare in 2022:
- Ford Stock: $F – 37.99% less this year
- General Motors Stock: $GM: Down 36.91% this year
- Rivian stock: $RIVN: down 75.63% this year
- Lucid Actions: $LCID: 80.42% less this year
- Polestar Stock: $PSNY – Down 67.38% this year
Disclosure: Joey Klender is a shareholder of TSLA. I currently do not own any other automotive stocks.
Keyword: “Tesla will be great in the long run,” Musk says as stock slide continues
