Tesla shares fell on Monday for the fifth straight session amid massive market sales, causing a total decline in market capitalization of more than $ 250 billion in the last month, according to MarketWatch.
Tesla has fallen 21% on the stock market in the last five trading days, totaling a 34% drop in the last month. Since the January 26 peak of about $ 850 billion, Tesla has already lost $ 277 billion in stock.
At the same time, Tesla entered its third bear market period – defined as a 20% or more drop from its recent high – in the last year, after the company faced massive sales in both March and September 2020. However, the carmaker’s volatile shares remain on a 360% increase over the last 12 months.
Shares of technology companies have been hit hard in recent weeks, as the Nasdaq index has fallen 9% in the past month. Companies in the electric vehicle market have been hit hard. For example, Nio has fallen 38% in the last month, Nikola Corp. by 38%, and Li Auto by 30%.
One of the reasons is the global chip crisis, which has affected carmakers’ supply flows. Tesla even temporarily shut down the Fremont plant in Caliornia due to a “component shortage.”
According to CNet, customers who have ordered Model 3 and Model Y are facing delays of several months in terms of delivery.
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