Wed, April 03, 2024 at 02:54

• 

  Kang-hoon

  • Hello Annie, I have some news about Tesla, Inc.

  • The company's stock fell nearly 5% on Tuesday, wiping out about $27 billion in market capitalization in a single session.

  • 
• Annie

  • Oh my!😱 That's a huge loss.

  • What caused this drop?

  
• 

  Kang-hoon

  • The negative catalyst that drove the stock lower was Tesla's downbeat deliveries update for the first quarter.

  • 

  • The number came in well below the company-compiled consensus of 431,000 units.

• Annie

  • So, they didn't meet their delivery targets?

  • That's not good.😔

  
• ADward

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• 

  Kang-hoon

  • Correct, the Elon Musk-led company delivered 386,810 vehicles for the first quarter, down 8.5% from the year-ago period and a steeper 20.16% decline from the fourth quarter.

• Annie

  • Wow!

  • That's a significant drop.

  • What's the reason behind this decline?

  
• 

  Kang-hoon

  • Tesla blamed the weak performance on the early phase of the production ramp of the updated Model 3 at the Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin.

• Annie

  • Oh no!😮 That sounds like a lot of challenges.

  
• 

  Kang-hoon

  • Indeed.

  • However, despite this negative news, Cathie Woods Ark Invest accumulated an additional tranche of the stock.

  • 

  • Ark bought a combined 234,998 shares worth $39.16 million.

• Annie

  • Really?

  • That's interesting.🤔 Why would they buy more when the stock is falling?

  
• 

  Kang-hoon

  • Well, it's not uncommon for investors to buy stocks when they are falling in price, especially if they believe in the long-term prospects of the company.

  • It's a strategy known as 'buying the dip'.

• Annie

  • I see.

  • So, is this news good or bad for the market?

  
• 

  Kang-hoon

  • From a short-term perspective, this news is definitely bad for Tesla's stock price and its investors.

  • 

  • However, it's important to note that these are temporary issues and Tesla remains a leader in the electric vehicle market.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.