Tesla can lose the vast majority of its market value if the demand for electric cars in China falls sharply. Experts from Morgan Stanley write that in a report. In an extreme case, the value of the share drops to 10 dollars, as the investment bank outlines in a worst-case scenario.
Market researchers are counting on the fact that the maker of electric cars will probably only achieve half of the previously estimated sales in China. They also point to the alleged email from CEO Elon Musk who allegedly asked employees to ‘moderate’ spending.
“The focus on cost reductions together with the departure of several directors are signals that Tesla is under real stress,” the analysts conclude.
The Tesla share is currently traded on Wall Street for around $ 200 each. Tesla lost 2.5 percent of its market value in the first hour of trading in New York.
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