Tesla and its CEO Elon Musk are well known for breaking records and taking first places in various rankings. In 2012, the manufacturer launched the first all-electric all-electric premium sedan. Six years later, SpaceX launched its most powerful rocket, the Falcon Heavy. Tesla Roadster became the first car in space, recalls Fortune.
Musk recently broke other financial records. The rise in Tesla shares to $ 30 billion from mid-April 2020 to $ 894 billion on January 26 exceeded even the wildest dreams of the company’s supporters and investors. In January, Musk owned $ 185 billion, becoming the richest man in the world.
Musk and Tesla broke another record due to the sale on the markets. Since its peak in early January, the company’s valuation has collapsed by 36% – by $ 305 billion to $ 544 billion on Friday. No other company has deleted such an amount from its capitalization for such a period of time.
The drop of more than $ 300 billion exceeds the estimate of almost all companies in the S & P500, except the most expensive 16. Tesla erased twice the total capitalization of Ford and General Motors. Or more than $ 100 billion more than the second most expensive carmaker, Toyota.
Musk himself has lost $ 12.8 billion since the beginning of the year and is now in second place after Amazon founder Jeff Bezos.
Of course, Musk’s company has seen significant declines in the past – and has since recovered to new heights. From mid-February to mid-March last year, it erased half of its market capitalization. And in the first two weeks of September it fell by 34%.
The decline, caused by the overvaluation and the sale of the bond market, erased a total of $ 1.6 trillion. from technology stocks in the United States. On Friday, the Nasdaq 100 climbed 1.6%, but still ended the week with almost 2% down, recording the longest period of decline since September.
Despite the reduction in prices, the ratings of technology companies are still above their average levels. The price-to-earnings ratio for the Nasdaq 100 is about 27 times – well above the average for the last five years of 21.
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