A 70 per cent decline in Tesla’s stock price could allude to a change in the preconceived narrative, said Zerodha co-founder Nikhil Kamath, who also runs alternative asset management company True Beacon, in a series of tweets.
“A 70 per cent decline in Tesla’s stock price could allude to a change in the preconceived narrative. Two big questions, one, in countries that still generate power using thermal means and lose up to 50 per cent in transmission, do electric cars make sense?,” tweeted Kamath, sharing details in a graphical representation, attributing the research to a twitter handle called ‘financebyanmol’.
A 70 per cent decline in Tesla’s stock price could allude to a change in the preconceived narrative. Two big questions, one, in countries that still generate power using thermal means and lose up to 50 per cent in transmission, do electric cars make sense?@financebyanmol pic.twitter.com/IH8sGdsBe9
— Nikhil Kamath (@nikhilkamathcio) January 15, 2023
Another question, as per Nikhil Kamath, arises if electric cars cause less harm factoring in the cost of battery tech and raw ingredients required. “Two, when one actually calculates the impact on the environment, factoring in the true cost of battery tech and all the raw ingredients required to facilitate this, do electric cars cause less harm? If yes, by how much and how many years do the cars need to run for?,” he added.
Last year, Tesla stock had its worst year, being among the biggest draggers on the benchmark S&P 500 index and the tech-heavy Nasdaq index, since the company’s inception due to slowing growth in China and Musk’s distraction with Twitter.
It has lost more than half its value since the start of October as investors worry that Twitter was taking much of Chief Executive Elon Musk’s time while fretting about his stake sale in the electric-car maker.
Tesla Inc has slashed prices globally on its electric vehicles across the United States, Europe, the Middle East and Africa, and in Asia, and the discounts, as per analysts, may make EV cars affordable.
(With inputs from agencies)
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