It's dangerous to mix personal views on Musk with Tesla. There...

It's dangerous to mix personal views on Musk with Tesla. There are obviously strong links between the two in many aspects, but if you put Musk to one side Tesla is quite a phenomenal company when you look at the detail.

In my view, the share price drop is due to;

a) Tesla was overvalued already (investors wanting to jump on the bandwagon - FOMO)
b) The economic climate in general (Covid + Ukraine = inflationary pressure), US tech stocks are down across the board by anywhere between 30-70% (Amazon, Asana, Lyft, etc)

The volatility of the Tesla share price is matched only by how polarising Elon Musk is as a person. You get these different narratives around the business that people pile into and swing the SP quite often. People can make a lot of money from this, playing both the ups and downs (day traders and swing traders).

All this means that it is quite hard for most people to figure out a fair value for Tesla stock based on the fundamentals, as the price is pushed around by sentiment so often.

As with most things, the devil is in the detail, not the tweets.

GLTAH