Top Market analysts all agree that this could be the end of Tesla stay tuned to find out what just happened in today's shocking news story welcome to trade daily where we break down all the best stock market news like And subscribe to keep up to date with the stock market and I really hope you enjoy this video [Music] as every investor is probably well aware by now in October the head honcho of Tesla Elon Musk bought Twitter for four to four billion dollars to complete this deal musk sold 19.5 million shares of


Tesla stock and took out a lot of other financing auctions however analysts have pointed to the fact that an even bigger price tag on the deal is that the Twitter project is taking over a tremendous amount of musk's time which means that Tesla's CEO is not really doing much at Tesla Tesla's stock is down by double digits since musk's takeover of Twitter which likely isn't all due just to economic woes it is also worth mentioning that musk has brought over 50 Tesla employees especially software Engineers Twitter to


do code reviews and more which again means they're not doing much for Tesla at the moment few Business Leaders have had as much of an impact on their company's stock price and access to financing auctions as Elon Musk as the CEO of Tesla musk has helped change how the world thinks about electric cars ever since he bought Tesla from its original Founders under his leadership Tesla has become one of the most Innovative and successful companies in the automotive industry while it is hard to quantify the exact


impact that musk has had on Tesla there is no doubt that he has been a driving force behind the company's success even if he hasn't done much on the engineering side that's not the job of the CEO anyway his contribution has been mainly in terms of drumming up enthusiasm raising the stock price and securing favorable lending terms and financing options for the company thanks to musk's vision and determination Tesla is well on its way to revolutionizing the transportation sector for many investors musk is the


reason to invest in Tesla stock in the first place however right now he has a lot on his plate running Twitter is a full-time job that he really has no prior experience in as running as social media company is vastly different from running an auto manufacturer hence there is a growing fear that for him Tesla will fall off the radar revamping an international social media company is an ambitious project for musk unless someone else steps up to the plate to lead Tesla behind the scenes the Eevee company could suffer the


consequences Tesla is facing challenges on multiple fronts while at the Forefront of innovation Tesla is currently looking into supply chain issues causing problems for its production line it was estimated that 100 units of Tesla's cyber truck will be produced by the end of 2022 but due to a shortage in semiconductor chips production has been stopped until 2023. however that is not the only thing the EV Giant needs to worry about kavi and the fear of another Nationwide lockdown in China have spooked investors and


Tesla is already facing a decline in shipments in October Tesla carried out a price cut on its EVS in China to battle the weakening demand in the country analysts are worried that it could signal lower profits in the coming quarters plus electric vehicle subsidies are either set to expire soon or are getting slashed down in countries like China Germany and Norway this might bring about a slight decrease in consumer attraction to EV finally let's talk about the macroeconomic environment as the Federal


reserve's target of dampening inflation has not been achieved further price hikes are to be expected Federal Reserve Bank of Atlanta president Rafael Bostic commented that he sees a further tightening of 75 to 100 basis points the concept price hikes will directly decrease Tesla consumers buying power and that's on top of inflation making everything else more expensive for consumers and decreasing their disposable income over the last few months Tesla stock has taken a beating much of that has got to


do with a broader economic downturn but it also has to do with recent events that are more company specific the biggest chunk of Tesla's valuation has always come from speculation slash public opinion musk has disposed of 36 billion dollars worth of Tesla shares and while his stake in the company is still 14 when your founder sells the stock it's not a good look for a company and speaks to a lack of faith this key executive has in its future in addition musk has said that he's seeking a new CEO for Tesla there's no


specific timeline and the lack of clarity hurts the stock price some investors will not be happy with the change of power as many invested initially because of musk finally there is a pending lawsuit against Tesla and musk about his compensation package which is a 10-year Grant of 12 tranches of stock options each transvests if the company reaches specific Milestones the package is creating controversy especially considering its size which is reportedly 50 billion dollars Tesla bulls have been under pressure in


recent months however there are some positives still in the third quarter Tesla produced 365 923 electric vehicles a 42 percent increase sequentially and the total deliveries were 343 830 up by 35 during the same time such numbers were possible because a smart Factory operations utilization and increased consumer demand moreover on revenue of 21.5 billion dollars the free cash flow balloon to 3.3 billion dollars largely due to Tesla factories reopening after coffee lockdowns during the earnings call for


the third quarter must mention that Tesla is figuring out the right way to establish a share repurchase program he mentioned that the decision was up to the board but the buyback program could be from 5 billion to 10 billion dollars Tesla plans to produce 100 new Tesla semi trucks in 2022 and 50 000 units annually by 2024. moreover the production of Tesla's cyber truck will start in the middle of 2023 at the gigafactory in Texas it already has 1 million in reservation orders China has proven to be a key market for


EVS in the past but it seems like it might be picking up even more speed in November we saw 14 000 EVS being sold within China's borders with this being caused for major celebration there are also some macroeconomic indicators to keep in mind on a domestic level the inflation reduction act in the U.S will help attract consumers as a 7 500 Purchase Tax Credit will be awarded to buyers of electric vehicles from January 2023 that should turbocharge this segment once again in the U.S Tesla's future is unclear and it remains


to be seen where it is heading musk decisions will let us know if Tesla stays in his plans for the future there is a lot of uncertainty around this company and it's stock Tesla is still unrivaled in the EV industry for now but it will bode well for investors to hang back and see which way the tide turns in the coming months after shedding hundreds of millions of dollars in market value this year Tesla's stock is now presenting investors with a more favorable risk to reward opportunity so says City Group


analyst Eddie Mike Lee who upgraded his rating on the electric vehicle makers shares from cell to neutral on Wednesday Mike Lee noted that following the Steep decline in its share price Tesla's stock is now trading for about 30 times his earnings projections for this year a far more reasonable level in his opinion still likely warns that competition is intensifying in the EV Arena but he postulates that Tesla's competitive position could strengthen if the economy falls into a prolonged recession since a


difficult economy would likely take a bigger toll on its smaller and less financially sound rivals all told Mike Lee boosted his Share Price Forecast from 141.33 to 1076 dollars or roughly 4 percent lower than the Stock's closing price on Wednesday he did however say that improvements in Tesla's average vehicle selling price and gross margins would drive him to increase his valuation Morgan Stanley analyst Adam Jonas also thinks the sell-off in Tesla's shares is overdone Jonas expects Tesla to be a prime


beneficiary of the EV focused incentives in the inflation reduction Act he also noted that it is the only automaker that his firm covers that already earns a profit from its EV sales for these reasons Jonas is far more bullish than likely on Tesla's prospects he has an overweight rating and a 330 dollars price Target on the stock and with that we've come to the end of the video I'd like to give a huge shout out to anyone who's made it this far I hope you enjoyed the video I'd also like to


make it clear that this is a news and entertainment video not investment advice you should always do your own research and speak to a financial advisor before making any Investments thank you all so much for your support don't forget to like And subscribe for the chance to win up to twenty thousand dollars in Amazon gift cards and we'll see you in the next video foreign if you want more crazy trade news how about this video we did