Tesla Stock CRASHES Lower: Now -58% In 2022

TL;DR

Tesla stock was down 58% year to date in 2022 even as the company’s revenue was projected to rise from $53.6 billion in 2021 to roughly $83–84 billion. The discussion contrasts Tesla’s growth and 16% net margin with concerns that Elon Musk is overstretched managing five companies, distracted by Twitter, and facing rising EV competition. Read on for the numbers behind the crash and the risks highlighted for shareholders.

Transcript

look something's got to give but uh the short answer is Elon is stretched and look he's managing five companies who wouldn't be a little overstretched but will the Bears have been winning Tesla down over 50 since February alone short sellers making 11.5 billion dollars if you look at the numbers and you just put the politics aside Tesla this year w... Read More

Key Insights

• ❓ Tesla's stock has suffered a major decline in 2022, primarily due to concerns about Elon Musk's stretched management and distractions.
• 🥺 Despite the stock decline, Tesla's financial performance has been impressive, with significant revenue growth and industry-leading net margins.
• 🤨 Elon Musk's focus on other ventures, such as the Twitter deal and political controversies, has raised doubts about his ability to prioritize Tesla's success.
• 🍰 Short sellers have profited from Tesla's stock decline, adding to the negative sentiments surrounding the company.

Questions & Answers

Q: Why did Tesla stock crash 58% in 2022?

The discussion attributes the decline partly to noise surrounding Elon Musk, including his Twitter activity, political controversy, and divided attention across five companies. Tesla stock was down 58% year to date, even though the company continued reporting strong growth and margins.

Q: How much had Tesla stock fallen since February 2022?

Tesla was down more than 50% since February alone. Across 2022 year to date, the decline had reached 58%.

Q: How much did short sellers make from Tesla’s decline?

Short sellers made $11.5 billion as Tesla’s stock fell. The transcript presents this as evidence that bearish investors had been winning during the decline.

Q: How fast was Tesla’s revenue expected to grow in 2022?

Tesla’s revenue was projected to rise from $53.6 billion in 2021 to approximately $83–84 billion in 2022. The discussion characterizes that increase as 55% revenue growth.

Q: How was Tesla’s vehicle growth performing during the stock crash?

Tesla was described as achieving 45% growth in vehicles. This performance supported the distinction made between the company’s operating results and its falling stock price.

Q: How did Tesla’s net margin compare with GM and Ford?

Tesla was posting a 16% net margin. By comparison, GM and Ford were posting margins of 5% and 6%, respectively, which the discussion described as an industry-leading advantage for Tesla.

Q: How did Elon Musk’s workload affect concerns about Tesla?

Musk was described as stretched while managing five companies and dealing with problems at Twitter. The discussion argues that Tesla needed his attention for competition, new products, and the Cybertruck rollout.

Q: What competitive risks did the discussion identify for Tesla?

The discussion said Tesla still dominated the EV market at that time, but competition was coming online. Volkswagen and Chinese competitors were singled out as likely to stretch Tesla, increasing the importance of Musk staying focused on the company.

Summary & Key Takeaways

• Tesla's stock has dropped over 50% since February 2022, with short sellers profiting 11.5 billion dollars.

• Despite the stock decline, Tesla's revenue is expected to grow from 53.6 billion to around 83-84 billion in 2022, with strong growth in vehicles and industry-leading net margins.

• Elon Musk's management of multiple companies and distractions, such as the Twitter deal and political controversies, have caused concerns about his ability to focus on Tesla's success.