A series of sharp setbacks! Tesla shares have fallen below $600

Tesla's share price has suffered a series of heavy losses recently. On March 5, Tesla's shares fell another 3.78 to close at $597.95. Tesla's closing price fell below $600 for the first time since December 4.

It is reported that Tesla’s share price has fallen by 15% since 2021. According to the closing price of $597.95, Tesla’s market value is $573.944 billion, still significantly ahead of other car manufacturers.

A series of sharp setbacks! Tesla shares have fallen below $600

According to the analysis, Tesla’s stock price has fallen continuously recently, mainly due to four factors.

The first is the Federal Reserve.

On Thursday, Federal Reserve Chairman Powell said that with the resumption of the US economy after COVID-19, the United States is facing pressure of price inflation and inflation.

Financial markets worried that the Federal Reserve would raise interest rates to curb inflation, while bond yields began to rise.

As soon as Powell’s voice fell, the U.S. stock market was shocked, and there was a large-scale adjustment in technology stocks.

The second is market competition.

Tesla has always been a global leader in pure tram and automatic driving, but some strong competitors have emerged. Some long-term shareholders and supporters of Tesla began to cash out.

The third is the shortage of spare parts.

In the past six months, the global automotive industry has suffered an unprecedented shortage of chips, and Tesla has not been spared. On February 25, musk said that the electric vehicle factory in Fremont, California, was forced to stop production for two days due to a shortage of parts.

Finally, there is an increase in expenditure.

It’s always been a big problem for Tesla to control costs and expenses.

At the end of last year, musk said in an open letter that investors believe in the company because of its future profitability, but if they realize it won’t happen, Tesla’s share price will plummet.

In addition, Tesla faces a massive vehicle recall. In January, the U.S. national highway traffic safety administration asked Tesla to recall about 158000 model SXS.

In February, the State Administration of market supervision and administration announced that Tesla motor (Beijing) Co., Ltd. filed a recall plan with the State Administration of market supervision and administration in accordance with the requirements of the regulations on recall management of defective automobile products and the measures for the implementation of the regulations on recall management of defective automobile products. From February 5, 2021, Tesla motor (Beijing) Co., Ltd. recalled some imported M products produced from September 18, 2013 to February 20, 2018 odel

S model, a total of 20400 vehicles; recall part of the imported model x models produced from March 12, 2016 to February 16, 2018, a total of 15600 vehicles.

It is understood that the EMMC multimedia memory cards loaded on some vehicles within the scope of recall will exhaust the life cycle of each storage unit as time goes on and according to the actual use.

The EMMC controller will not be able to maintain the integrity of the file system when the hardware of the EMMC storage unit reaches the life limit. This kind of loss may lead to the software function failure of the central display screen, and there are potential safety hazards.