News – USA – Tesla stock is in bear market taking other EV stocks

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Inventory of the electric vehicle pioneer

Tesla

is now in the bear market area This is a problem for the entire EV sector

Tesla shares closed 86% Monday at $ 714 a share, down nearly $ 186 from the 52-week high of $ 90040, which they hit in January, which is around 21%

It seems odd to say, since the term is typically used to refer to broad groups of stocks, but there’s a new bear market – a 20% drop from a high – in Tesla stocks

Of course, Tesla is the £ 800 gorilla in the EV sector.It’s worth almost as much as all other traditional automakers combined.And when Tesla stock falls, other EV stocks follow suit, as Wall Street often comes up with on valuation is instructed by Tesla to set course targets

Monday, stocks of three other soaring EV stocks with significant sales –

NOK

(NOK),

XPeng

(XPEV) and

Li car

(LI) – down roughly 7% to 8% And since Tesla stock hit its all-time high, NIO, XPeng, and

Li car

Stocks are down around 20% on average, just like Tesla

It looks like Tesla is the benchmark for EV stocks, just like that

S&P 500

is the basis of comparison for US. Holdings That raises an interesting idea for EV investors: the Tesla version of the beta The beta concept can be seen as a measure of a stock’s systemic risk, so to speak, what happens to a market depends on what happens to a single stock through that Beta of this stock happened

For example, if a stock has a beta of 2, it would be expected to gain about 2% if the market rises 1%

S&P 500,

For example, if you have a beta of around 0, so you won’t rise as quickly as the broader index rises

Investors can interpret gold beta to mean that about half of what happened to these gold stocks is explained by what happened to the S&P 500 and the other half is due to other factors, such as: B. on developments in the gold price

Beta is Just a Math Calculation Investors can, if they want, calculate the beta of a stock relative to atmospheric pressure in Central Park, but the math has to mean something, so no one does that with electric vehicles, the idea of ​​Tesla feels like a risk for EV stocks however not after a stretch at

The “Tesla Beta” of the three Chinese EV stocks – NIO, XPeng and Li – is around 05. As with gold stocks, this can be interpreted to mean that about half of what happens to these three stocks is a function of it is what happens to Tesla stock

It’s all about the potential for higher inflation Rising inflation, a growing problem in the marketplace, tends to penalize high-growth stocks more than low-growth stocks because of the way financial discount rates work, and most of Tesla’s cash flow comes in the years to come, and the future cash flow is worth less today with rising interest rates

On Monday, many growth stocks took it on the chin

Nasdaq Composite,

Known as the home of many fast-growing tech companies, Tesla’s beta versus Nasdaq is down 25%, so investors shouldn’t be surprised by a 5% drop in Tesla stock

However, Tesla shares fell 9% The additional 4% remains a mystery The Electrek news site reported that Tesla is no longer taking orders for its most affordable Model Y, but high demand for cheaper EV models isn’t a bad thing. p>

CEO Elon Musk also spends a lot of time tweeting about cryptocurrencies, which could annoy Tesla investors. His tweeting is not really different from recent history, but Musk is famous for his tweeting on many topics

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Tesla, Inc, Stock, NASDAQ: TSLA, Electric Vehicle, Nasdaq, Stock Market

News – United States – Tesla stock is in bear market, taking other EV stocks

Source: https://www.barrons.com/articles/tesla-stock-is-in-a-bear-market-its-taking-other-ev-stocks-with-it-51614034570