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Tesla Stock Price: Analyzing Its Recent Activity

Tesla, the electric vehicle manufacturer founded by the legendary entrepreneur Elon Musk, has captivated the stock market with its significant volatility over the past few years. To this date, Tesla remains one of the most valuable companies globally, attracting high investor interest and substantial market share. Despite recent challenges in the Tesla stock price, the EV manufacturer is recognized as one of the fastest-growing EV manufacturers in the market, with a significant focus on the latest technological innovations. 

The biggest key factor behind Tesla’s rising stock price is Elon Musk’s significant share sales, which have raised several concerns about investor trust and confidence in the company's future. In this detailed guide, we will look at several key factors contributing to Tesla’s recent stock price volatility. 

Tesla’s Stock Price Movement from April 2024 - May 2024

Date Close/Last Volume Open High Low
05/10/2024 $168.47 72627180 $173.05 $173.0599 $167.75
05/09/2024 $171.97 65950290 $175.01 $175.62 $171.37
05/08/2024 $174.72 79969490 $171.59 $176.06 $170.15
05/07/2024 $177.81 75045850 $182.40 $183.26 $177.40
05/06/2024 $184.76 84390250 $183.80 $187.56 $182.20
05/03/2024 $181.19 75491540 $182.10 $184.78 $178.42
05/02/2024 $180.01 89148040 $182.86 $184.60 $176.02
05/01/2024 $179.99 92829720 $182.00 $185.86 $179.01
04/30/2024 $183.28 127031800 $186.98 $190.95 $182.8401
04/29/2024 $194.05 243869700 $188.42 $198.87 $184.54
04/26/2024 $168.29 109815700 $168.85 $172.12 $166.37
04/25/2024 $170.18 126427500 $158.96 $170.88 $158.36
04/24/2024 $162.13 181178000 $162.84 $167.97 $157.51
04/23/2024 $144.68 124545100 $143.33 $147.26 $141.11
04/22/2024 $142.05 107097600 $140.56 $144.44 $138.8025
04/19/2024 $147.05 87074500 $148.97 $150.94 $146.22
04/18/2024 $149.93 96098830 $151.25 $152.20 $148.70
04/17/2024 $155.45 82439720 $157.64 $158.33 $153.78
04/16/2024 $157.11 96999960 $156.742 $158.19 $153.75
04/15/2024 $161.48 100245300 $170.24 $170.69 $161.38

Financial Performance 

It isn’t a secret that in recent quarters, Tesla’s earnings reports have failed to meet the market expectations significantly. For quite some time now, Tesla’s revenue growth and profit margins (two key market factors) have been under constant pressure from investors and shareholders. This is because of the increased competition in the EV market and increasing production costs. The company’s supply chain distributors have increased the costs due to rising inflation, which applies to raw materials as well. The latter has significantly contributed to a huge decline in investor confidence and has reduced Tesla’s stock price. 

Leadership & Strategic Direction 

We all know how the great Elon Musk has recently made several key changes in Tesla's leadership dynamics, resulting in the departure of many valuable key executives. These key executives not only held a significant position in the company but were the pillars behind Tesla’s stability and dynamic future. These new changes have created uncertainty among investors and raised questions about Tesla’s vision and operations activities. The CEO of Tesla Motors sold several of his Tesla shares, which has left the investors and the general audience wondering about Elon’s commitment to Tesla and the growing negative sentiments among investors. 

Macroeconomic Conditions 

If you think the current market is stable, you have a storm coming ahead to smack you in the face. The biggest reason behind Tesla’s volatile stock price is the concerning interest rates and the current economic condition of the country. Recently, the sudden hike in the Federal Reverse’s interest rates has also made borrowing from the market incredibly expensive and reduced spending on electric vehicle companies like Tesla. Did you know that higher interest rates equal higher discount rates being applied to future company earnings? Do you know what this entails? Heavy discounts on earnings are equivalent to a depreciation of the Tesla stock prices. 

Regulatory & Policy Changes 

In most cases, changes in Government policies and regulations can also influence a company's stock price. For example, policies and regulations pertaining to environmental standards, emissions, and incentives for EV manufacturing companies frequently change. These regulatory changes can significantly impact Tesla’s operations and stock price. 

Market Sentiment 

Tesla stocks are often subjected to high levels of speculative trading, amplifying price swings. Market sentiment and trading charts are often affected by media houses and news, rumors, social media activity, and more. If there is any positive or negative update about companies like Tesla in the news or on social media, it can either boost or reduce Tesla’s stock price. 

Competitive Pressure 

As an investor and stock market enthusiast, you may have often come across the phrase, “No market is a safe market.” This also holds true for trading, investment, growth, and company markets as well. With recent additions to the EV market and new entrants rapidly entering the race using the latest technological innovations, the competition has rapidly grown for Tesla. Many companies are expanding their EV offering with a slew of new products, putting immense on Tesla’s market share and profitability scale. 

Key Takeaways 

In the above sections, we discussed how different key factors such as competitive pressure, macroeconomic conditions, several policy changes, and key developments in leadership & strategic decisions have created a challenging environment for Tesla, leading to the recent volatility in its stock price. However, Tesla still strives to remain a focal point in the market, all thanks to its innovative edge and leadership dynamics. The factors mentioned above make Tesla both a high-risk and potentially high-rewarding investment.

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Andrew Gosselin CPA

Written by Andrew Gosselin CPA

Andrew Gosselin, CPA is a former senior strategy consultant for a global, multi-billion-dollar software company. He is the Senior Contributor / Editor at MoneyInc, and he holds degrees in accounting, finance, and international business from Bentley University, where he played varsity basketball and was the Lead Tutor of the accounting and finance curriculum for the Bentley Athletic Department. Andrew was named a President's Academic Scholar and was inducted into the Falcon Society, a distinction awarded by the Bentley faculty and his peers for being among those with the highest achievement and abilities in his graduating class.

Read more posts by Andrew Gosselin CPA

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