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Losses Top $895 Billion As Rival Carmaker Warns Of ‘Challenging’ Weeks Ahead

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Tesla shares plunged to new two-year lows on Tuesday. The automaker is already reeling from concerns and CEO Elon Musk has shifted too much focus to Twitter. Prolonged shutdowns at major factories will reportedly take place next month, facing widespread skepticism about electric vehicles. In China, the world’s largest auto market, demand has plummeted due to the Covid-19 outbreak, allowing the industry to meet high sales expectations.

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Tesla shares plunged 11.5% to $109 on Tuesday. This is his lowest level since August 2020, and he is down 73% from his high of over $400 in November 2021.

Losses piled up in pre-market trading after Reuters reported plans to cut production at its Shanghai factory in January, the month to observe China’s Lunar New Year.

Tesla, which disbanded its communications team in 2020, did not comment on the report, but this weekend the company extended a planned eight-day production shutdown at the company’s largest factory by car production, due to Covid-19. Infection and rising waves of workers and suppliers.
In an emailed comment, Adam Crisafri, an analyst at Vital Knowledge Media, called the news “just the latest in a string of cautious headlines” about Tesla, noting that the company last week He pointed out that a $7,500 discount has started. To boost end-of-year demand, he offers two of his most popular models.
Fueling further pessimism, rival electric car maker NIO warned on Tuesday morning that it was “facing delivery and production challenges” as a result of the Covid-19 outbreak in major Chinese cities this month. , about 15% below expected fourth-quarter deliveries, and the stock fell 8%.

Things to watch out for

Tesla’s fourth quarter shipment numbers are expected to be announced in early January. Analysts expect about 422,000 vehicles to be delivered in another record quarter for the company. Anything below that could further upset investors.

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Tesla’s stock soared to an all-time high last November, but suffered heavy losses as Musk quickly began selling stock and turned his attention to social media giant Twitter this year. The plunge in Tesla stock made it his fifth-worst-performing stock on the S&P 500 this year. The index is down 20% for him. Much of the decline came after Twitter shareholders approved Musk’s $44 billion bid to buy the social media network in late September. Wedbush analyst Dan Ives said in a note to clients last week that “Musk has lost the trust of the broader investment community,” adding that Tesla’s woes were “broken.” He said it was because of a promise. That’s how you “finish” it.

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“At the same time, Tesla is cutting prices and inventories are starting to build up globally. From a leadership standpoint, Musk is seen as at the wheel.” 9% of $1,400.

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Tesla’s market cap will peak above $1.2 trillion in November 2021. The stock now stands at $344.5 billion, which equates to a loss of about $895 billion.

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Musk was once worth more than $215 billion, but Tesla’s plummeting stock has pushed his fortune below $140 billion. forbes‘ Estimate. The 51-year-old was overtaken by luxury goods giant Bernard Arnault earlier this month to relinquish his status as the world’s richest person.

References

Here’s how the 2022 Tesla stock crash compares to other crashes (Forbes)

Tesla drops 9% as demand piles on concerns over Musk’s Twitter focus (Forbes)

Tesla stock ‘hurt’ by Musk’s Twitter antics — ‘very nervous’ months ahead (Forbes)

Elon Musk ‘Actively Seeking’ Succession as Twitter CEO, Report Says (Forbes)