Jump to content

Where next for Tesla shares amid deliveries slump and bitcoin hit


Recommended Posts

The Covid-induced China slowdown has hit Tesla deliveries and it's taken a $440 million write-down on its bitcoin purchase.

 

 

 Jeremy Naylor | Writer, London | Publication date: Monday 04 July 2022 

The slowdown in China as a result of the country's strong Covid lockdown measures has hit deliveries of electric carmaker, Tesla Inc which were already being revised down by auto analysts.

Additionally, Tesla has said that it will take a $440 million write-down on its $1.5 billion purchase of bitcoin in February 2021.

Video Transcript

Tesla's Q2 results

It's been a tough second quarter (Q2) for Tesla, with shortages of parts and pandemic-related production shutdowns at its plant in Shanghai causing a big drop in the electric carmaker's latest global deliveries.

Let's take a look at the numbers as we see them. Tesla reported that it delivered 254,000 vehicles in the second quarter. That is up 27% year-on-year (YoY).

The Chinese shutdowns brought Tesla its first back-to-back quarterly drop in deliveries in more than two years. This is well down on the 350,000 deliveries analysts were expecting, although some had already started to cut their expectations after chief executive, Elon Musk, had warned that the figure was likely to be roughly level with the first quarter (Q1), which came in at around 310,000 deliveries. So, this is a big disappointment.

Now much of what has happened has been because of what's been going on in China with its enforced Covid shutdowns, which have been on and off for much of the year so far, and what the company said were ongoing supply chain challenges in the factory - shutdowns beyond its control.

Tesla technical analysis

Let's take a look at the chart for Tesla.

There is no trade today because of the US holiday for Independence Day, despite the fact that IG has 24-hour markets trading, there is no all-sessions or stock trading at all on this Monday. So I'll have to wait until Tuesday to get a reaction to what's happening.

Adding to the carmaker's woes is the fact that it's also facing a $440 million write-down in its bitcoin holdings after a slump in the digital currency's value. Coming out of the weekend, we've got bitcoin down a further two thirds of 1%.

This vertical red line we have here on the left hand side of the chart is the point at which the company bought its exposure to the cryptocurrency market - $1.5 billion worth of bitcoin it bought back at that point.

But the carmakers' bet has turned into heavy loss-making in recent months as bitcoin crashed to that 18-month low.

 

 

ig group.PNG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,076
    • Total Posts
      95,532
    • Total Members
      43,696
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    jimipop
    Joined 04/10/23 17:01
  • Posts

    • Summary: Still expecting another low for indices, the current move up part of a corrective rally. Normally I look for indices lead from stocks, however some stocks are displaying strength and some weakness so this mix bag is showing up in the Nasdaq 100 pattern as a probable wave four triangle at the current low. Trading Strategies: Nil Video Chapters 00:00 SP 500 (SPX)  05:02 NASDAQ (NDX) 08:26 Russell 2000 (RUT) 10:43 DAX 40 (DAX) 16:07 FTSE 100 UKX (UK100) 22:15 ASX 200 (XJO) 38:47 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com   Access Trial  
    • A lot of transformation is happening to BNB at the moment with the integration of bitcoin lightning network and Optimism especially with opBNB birth but that has not reflected in users confidence primarily because of the many negativities surrounding the platforms operations in North America and Australia. BGB on the other is gaining traction and value because a lot of investment is going into the development of the ecosystem recently with the injection of $100M and also improved partnership deals
    • I know we still have a lot to do to attract massive crypto adoption but steps like those taken by Binance and bitget in the wake of what happened to FTX is commendable in righting the wrongs of the lapses and loopholes that exist pre-FTX saga. But more still needs to be done to restore confidence to the level it was pre-2020 bear market like consistent regulatory framework and regular security updates by crypto platforms
×
×
  • Create New...
us