KUALA LUMPUR, March 17 (Bernama) -- Bursa Malaysia extended gains to a third consecutive session today, driven by broad-based buying across various sectors following the recent strong sell-off, in line with the performance of regional markets, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 15.66 points, or 1.04 per cent, to 1,527.81 from Friday’s close of 1,512.15. The benchmark index opened 5.43 points firmer at 1,517.58 -- its intraday low -- and peaked at 1,531.63 during the mid-morning session and maintained its momentum throughout the afternoon session. On the broader market, gainers thumped decliners 708 to 297, while 425 counters were unchanged, 994 untraded, and seven suspended. Turnover improved to 3.28 billion units worth RM2.40 billion from 3.24 billion units worth RM2.5 billion on Friday.
Tesla (TSLA) is on pace for its worst day since 2020, with shares down 15.43%. The electric vehicle giant's stock is now erasing its post-election gains, leaving investors to wonder if this is just a temporary setback or a sign of deeper trouble.
Key Factors Behind the Drop:
Disappointing Sales Data: Tesla’s sales figures have missed expectations, particularly in Europe, where deliveries for the Model 3 and Model Y have been below target in key markets such as Germany, France, Norway, and Spain. While the U.K. has shown stronger performance, concerns over weak demand in other regions are weighing on the stock.
Musk’s Distractions: Investors are increasingly concerned that Elon Musk is losing focus on Tesla, especially with his role as the head of the Department of Government Efficiency. Musk’s attention has shifted toward government-related efforts, including job cuts, which some see as detrimental to Tesla’s future growth.
Key Analyst Views:
UBS lowered its first-quarter delivery forecast for Tesla, citing longer delivery times for the Model 3 and Model Y. The bank also flagged the growing competition from BYD, a Chinese manufacturer that’s rapidly advancing in driver-assistance technology, making Tesla’s offerings less competitive in China.
However, not all analysts are bearish on Tesla. Wedbush analysts remain bullish, noting that while Musk’s involvement in the administration has caused some concerns, the impact on global sales is expected to be minimal—under 5%. They also believe that Musk will eventually balance his time between Tesla, SpaceX, and his new role, which should alleviate some of the distractions.
What’s Next for Tesla?
- Innovation Ahead: Wedbush’s Dan Ives argues that Tesla is entering one of its biggest innovation phases ever, and that the Musk brand won’t derail the company’s growth. He points out that, in the past, many skeptics have believed Tesla was on the brink of failure, only for the company to defy expectations.
The Bottom Line:
While Tesla is facing short-term challenges—especially related to sales performance and Musk’s distractions—the long-term outlook remains bullish for many analysts. The stock’s drop could present a buying opportunity for those who believe in Tesla’s innovation pipeline and market leadership.
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