Nov. 21, 2024, 4:09 p.m.

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Tesla could be kicked out of Tech's Big Seven What will be the impact?

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Recently, Tesla's position in the capital market has been re-evaluated, and Wall Street is evaluating whether the stock should be included in the "Tech Seven." The members of the "Big Seven" currently include Nvidia, Apple, Google parent Alphabet, Amazon, Meta, Microsoft and Tesla, and for a long time they were the dominant forces in the US stock market. After experiencing the previous four consecutive quarters of profit decline, Tesla's earnings ushered in a rebound, the third quarter revenue of 25.182 billion US dollars, an increase of 8%, due to the core performance indicators exceeded expectations, the market also gave confidence, after the release of the financial report, Tesla's stock price rose more than 22% a day, the largest one-day rise in more than a decade. Still, Wall Street strategists believe the stock is at risk of lagging behind other large-cap tech stocks because of overhyped fundamentals.

Tesla's expulsion from the "Tech Big Seven" would mark a major shift in its market position in the tech industry. At the same time, it will also bring complex and multi-faceted impact. First, the changes in the international technology industry pattern and the international market competition pattern, Tesla as a leader in electric vehicles and renewable energy technology, its position in the technology industry and electric vehicle market has been attracting attention. If Tesla is kicked out of the "Big Seven", it will mark an important change in the international technology industry landscape. This may trigger other electric vehicle companies and renewable energy field in the international market investment and competition, further accelerate the entire international industry reshuffle, and accelerate the rise of other electric vehicle companies and market share competition, thus promoting the innovation and development of the entire industry. At the same time, this may also prompt Tesla to increase research and development investment in the international market area to maintain its market leadership.

The second is the impact of the international supply chain, Tesla has an extensive supply chain system in the world, if Tesla is kicked out of the "technology seven", it may affect the stability of its supply chain. Tesla is one of the leading companies in the technology industry, and its expulsion from the "Tech Big Seven" may trigger market concerns about the future development of the technology industry, which in turn affects investor confidence and decision-making. At the same time, Tesla's suppliers may re-evaluate the prospects of working with Tesla and adjust their business strategies. This could have some impact on the global supply chain, especially for those suppliers who work closely with Tesla.

The third is the investment impact. As one of the leading companies in the technology industry, Tesla's expulsion from the "tech Big Seven" may trigger market sentiment fluctuations on the future development of the technology industry and investors, which will mark a major change in its market position in the technology industry, and investors' concerns about the future development of Tesla will affect investors' confidence and decision-making. Some investors may choose to dump Tesla shares and invest in other, more stable technology companies. At the same time, investors may re-evaluate and review their portfolios in light of Tesla's removal from the "Tech Big Seven" and pay more attention to factors such as the company's fundamentals, profitability and market position to reduce investment risk and seek better returns. This will have a direct impact on Tesla's stock price and market value.

Taken together, Tesla is at risk of being kicked out of the "Tech Big Seven," a potential change that would have multiple implications. Whatever the outcome, however, it will prompt Tesla and other tech companies to pay more attention to their own technological innovation, market expansion and investor relations. At the same time, it will also stimulate competition and cooperation across the technology industry and promote the continuous innovation and development of the industry. Investors should pay close attention to this change and adjust their investment strategies in time to cope with possible risks and challenges.

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