Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 32 , 10 November 2023


Open Access | Article

An Investigation into the Reason for the Decrease of Tesla's Stock Price Despite Obtaining a Great Sale in 2022

Jiabei Wang * 1
1 Chengdu Shude Middle School International Department

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 32, 56-61
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Jiabei Wang. An Investigation into the Reason for the Decrease of Tesla's Stock Price Despite Obtaining a Great Sale in 2022. AEMPS (2023) Vol. 32: 56-61. DOI: 10.54254/2754-1169/32/20231567.

Abstract

Tesla, a multinational automotive and clean energy company, is one of the world's most valuable companies with its CEO Elon Musk. However, in 2022, its stock price decreased by 65% although its sales and revenue went on very well. As a result, this paper tends to find out what led to this dramatic decline through literature reviews and the author’s additional analysis. This paper would solve this puzzle from the following four aspects: Musk’s acquisition of Twitter, a less promising NEVs market, threatening changes in Tesla’s biggest market (China), and the increase in the interest rate in the U.S.

Keywords

stock price, evaluation, electric cars, Tesla, Elon Musk

References

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2. Tesla. 18 Nov. 2014, “Electric Vehicle & Solar Incentives.”, Tesla.com, www.tesla.com/support/incentives

3. Tesla. January 25, 2023, Q4 and Full Year 2022 Financial Results, Ir.tesla.com, https://tesla-cdn.thron.com/static/SVCPTV_2022_Q4_Quarterly_Update_6UDS97.pdf?xseo=&response-content-disposition=inline%3Bfilename%3D%22TSLA-Q4-2022-Update.pdf%22

4. Big Wisdom. “Tesla”, accessed by 12 Fab. 2023

5. Yang, L., & Xiaomeng, L. Tesla has lost half of its value to Musk. Beijing Business Daily, Industry, 2022-12-14 (003),

6. Ahmad, S., & Biyani, S. Impact of Merger and Acquisition on the Companies Involved: A Case Study of MuskTwitter Acquisition. International Journal for Multidisciplinary Research (IJFMR), IJFMR23011594, vol. 5, no. 1, 2023,p6.

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9. Ho, J. 29 Dec, 2022. Vehicle demand is finally slowing down. Marketplace.org, https://www.marketplace.org/2022/12/29/vehicle-demand-is-finally-slowing-down/\

10. Yilin Wang. Global Wage Report 2022-23. 28 Dec, 2022

11. Chinese Business Network. 10 Jan, 2023. There are more than 600,000 new energy vehicle-related enterprises in China. Sohu, https://www.sohu.com/a/627453964_119659

12. Yang, L., & Xiaomeng, L. Tesla missed the goal for 2022. Beijing Business Daily, International, 2023-01-04 (008), p2.

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14. Weber, J. 23 Nov, 2022. Tesla: The Bubble Is Popping. Seekingalpha.com, https://seekingalpha.com/article/4560023-tesla-the-bubble-is-popping

15. China Association of Automobile Manufacturers (CAAM)

16. O’Hara, P. 12 Jan, 2023. Slowdown in China EV sales expected as subsidies end. Fastmarket, https://www.fastmarkets.com/insights/slowdown-in-china-ev-sales-expected

17. Rongjie, F. The Federal Reserve began a cycle of interest rate hikes. China Banking and Insurance News, 2022-03-21(008), p1.

18. Guobin, Z. How much impact will the Fed's rate hike have? Shenzhen Commercial Daily, 2023-2-3(A03), p1.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-085-1
ISBN (Online)
978-1-83558-086-8
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/32/20231567
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated