Tesla: Beijing Steps In


  • The reopening of China, coupled with Tesla, Inc.’s decision to cut its prices to reach its goals, made it possible for the company to end 2022 on a high note.
  • Beijing’s decision to focus on achieving its economic goals has all the chances to revive Tesla’s growth story and help the company to have another record year.
  • As for the long term, the bifurcation of the global system could negatively affect Tesla’s business due to the fragility of its supply chains that rely on undisrupted globalization.

Tesla Service Center. Tesla designs and manufactures the Model S electric sedan IV


The latest appreciation of Tesla, Inc.’s (NASDAQ:TSLA) stock in large part was possible thanks to Beijing’s decision to drop the idea of sticking with the zero-Covid policy. Instead, the government prioritized the country’s growth with the help of various stimulus

Tesla's Stock Performance

Tesla’s Stock Performance (Seeking Alpha)

Tesla's DCF Model

Tesla’s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)

Tesla's DCF Model

Tesla’s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)

Tesla's Market Share By Region

Tesla’s Market Share By Region (Tesla’s Latest Presentation)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Bohdan Kucheriavyi and/or BlackSquare Capital is/are not a financial/investment advisor, broker, or dealer. He’s/It’s/They’re solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

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