The Tesla company, led by billionaire Elon Musk, is going through a difficult period. The electric car maker initially published a not-too-positive report on the state of its company, and is now losing its positions in the market as well. Tesla shares have reportedly already lost 50% from their all-time high.
And this decline continues. As of Friday, October 14, Tesla shares ended the trading day down 7.6% to $ 204.99 per share. However, the electric car maker’s market capitalization is still large, surpassing $ 642 billion.
But it is not known how long this high level will last. It should be noted that just recently, Musk’s company shares plummeted due to the report for the third quarter of the current year. In addition, the collapse was recorded against the backdrop of the businessman’s scandalous statements about the so-called “peace plan” for Ukraine.
As a result, Tesla stock at close of trading on Friday was worth 50% lower than the record price of $ 409.97, a share recorded in November last year. The end of Tesla electric cars is coming or is it just a temporary phenomenon, we have yet to find out.
Such a significant depreciation of Elon Musk’s company assets is taking place against the backdrop of a large-scale collapse of financial markets. This has hit particularly hard, including companies in the tech sector. The fact is that the signs of a potential economic slowdown worry investors, who are already preparing for the fallout.
In general, the list of problems of the American electric car manufacturer is quite long. In particular, the logistical difficulties that affected the volume of car deliveries in the third quarter of 2022. In addition, the following challenges are also highlighted:
Analysts believe that the increase in the price of the company’s cars may affect demand;
Tesla’s factory in China cannot operate at full capacity due to the coronavirus, as Beijing authorities have a zero-tolerance policy on the virus and apply strict restrictions;
Shortage of supply and rising prices of raw materials which has become a challenge in general for all car manufacturers.
Furthermore, Elon Musk’s public statements regarding the acquisition of the Twitter company also influenced the position of the electric car maker in the stock market. One reason is the fear that it is difficult for a billionaire to lead multiple serious companies at the same time.
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3.4
Assessment 3.4 from 16 voice.
