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Tesla shares I’m in a dive. Compared to November 2020, when the automaker he was at the peak of his ascentElon Musk’s company it has lost over 54% of its value. 40% since last September, testifying to a complicated 2022 for the sector.
On December 13 the title had even fallen below 500 billion in capitalization, before recovering four, bringing the share price back to $161. The value of the data is huge, considering that in April, Tesla was worth more than a trillion
The decline of the Texan house also caused its CEO Elon Musk to lose the palm of richest person in the world. The South African tycoon, who holds 25% of Tesla’s shares and options, has in fact given up the scepter to the French Bernard Arnault, the patron of the Lvmh group.
But why is Tesla losing millions on the stock market?
The sponsorships disappeared are the basis of the controversy, among the various provocations also that of an independent smartphone
The economic situation
Complicating the life of Elon Musk and Tesla is certainly contributing the appreciation of the US dollar, which regulates more than half of international trade. Not least the increase in long-term yields in the United States, linked to rate hikes set by the Fed.
The news from China
However, they also weigh on the last few weeks news from China. Despite the denials that arrived promptly, a possible 20% production cut in December in the Shanghai gigafactory it still scared the market, even more so afterwards the record of 100,000 cars produced at the plant in Novemberalso thanks to the easing of the grip of the Chinese lockdown.
The competitors
China is also an obstacle for Tesla at the level of the country’s brand competition, starting with Byd. The latter, in particular, dominates the Chinese market with a share of 30% between hybrid and electric. The Austin-based company has recently chosen to lower the prices of its most popular models in China, to make them similar to those of rival companies.
Musk’s choices
Elon Musk himself contributed to the collapse of Tesla’s stock. If April was the month from which this descent started, much is due to the choice of the South African tycoon to buy Twitter for 44 billion dollars. A very important sum, which evidently made the market turn up its nose and to the Austin automaker’s investors.
After a semblance of recovery in the summerwhen it seemed that the purchase of the San Francisco social network could vanish, the opening of the federal investigation and the closing of the operation caused the prices of what remains at the moment to fall most valuable automaker in the worldstill far from Toyota, second at about 200 billion.
There Twitter management on the part of Musk, between the layoffs, the new opening to Donald Trump and the decision on the blue checks, is also affecting the reputation of the entrepreneur and, consequently, that of his companies. Tesla’s CEO has been publicly criticized by personalities of the caliber of Stephen Kingwho also owns a Tesla, e Paul Krugman. The actress Alyssa Milanoright on Twitter, he then announced that he had sold his car from the Texan house to buy an electric Volkswagen.
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