Tesla crashed! Us stocks plunged across the board!

Recently, Tesla announced after the bell the second quarter of this year's financial results, revenue grew 2% over the same period last year to $24.93 billion; Net income plunged 45% to $1.48 billion, both below market expectations, triggering a sharp drop in shares on Wednesday, which closed down 12.33% at $215.99 each. The core auto sales business generated $18.53 billion in revenue, down 9.3% from a year earlier. In terms of vehicle deliveries, in the second quarter of this year, Tesla delivered a total of 444,000 vehicles worldwide, 22,000 fewer than the same period last year.

The plunge in Tesla's share price has led directly to a sharp decline in its market value. Given the recent stock market slide, macro hedge funds have sold a lot of stocks recently, which may have put some pressure on the overall market. This not only damages the interests of shareholders, but also affects Tesla's market image and financing ability. And its impact is multifaceted. The first is the impact on Tesla itself, a decline in market value could affect Tesla's financing costs, as investors may demand higher returns to compensate for the risk. A plunge in the stock price would dampen investor confidence and lead them to be pessimistic about Tesla's future development. This could further exacerbate the fall in share prices, creating a vicious circle. A drop in market value could affect Tesla's funding costs, as investors may demand higher returns to compensate for the risk. With the rapid development of the new energy vehicle market, Tesla is also facing increasing competitive pressure, which poses a challenge to Tesla's market share and profitability. Tesla's product cycle is likely to enter a downward phase, and new products are needed to drive growth.

The second is the impact on the US stock market. As an important weighting stock in the US stock market, Tesla's stock price collapse is easy to trigger panic in the stock market. That sentiment could spread to other tech stocks and the market as a whole, causing stocks to plunge across the board. A slump in tech stocks like Tesla directly affects the performance of tech indexes like the Nasdaq. For example, on the day Tesla shares plunged, the Nasdaq plunged 3.64 percent, its biggest one-day drop since October 2022. The overall decline in the U.S. stock market can erode investor confidence and make them more cautious about future investments. This could lead to further volatility and instability in the market.

The third is the impact on related industries and the global economy, Tesla is a leader in the new energy vehicle industry, and the plunge in its share price may have a negative impact on the entire industry. Investors may reassess the investment value of the new energy vehicle industry, causing the share prices of related companies to fall. Since Tesla is one of the poster children of the tech industry, the plunge in its share price could raise concerns about the overall profitability and growth potential of the tech sector. This could lead to a collective decline in tech stocks and an overall correction in the market. Tesla's stock plunge could also have an impact on companies in its supply chain. These companies may face risks such as a decline in orders and revenue, which will affect their stock prices and performance. The plunge in U.S. stocks could exacerbate global investor fears and lead to a further decline in market confidence. This could affect the growth and stability of the global economy. In the face of market volatility and investor concerns, governments and regulators are likely to take measures to stabilize markets and maintain financial stability. These policy changes may have some impact on the global economy.

To sum up, the plunge in Tesla's share price and the overall slump in the US stock market have had a profound impact on the market, investors and related industries. Tesla needs to take proactive measures to address these challenges, including strengthening financial management, enhancing competitiveness, stabilizing investor confidence, increasing research and development investment, optimizing supply chain management, and repairing brand image. Only in this way can Tesla maintain its leading position in the fierce market competition and achieve sustainable development.