- Tesla’s stock has closed at a low of $110 and has lost $800 billion over the course of the year.
- Musk’s flagship company’s stock has been the fifth-worst performer in the S&P 500 this year, with the index down 20%.
- Tesla is cutting production at its Shanghai factory in January due to the Chinese New Year and a wave of Covid-19 infections among workers and suppliers.
Since 2021, Tesla has seen a significant drop in its stock price, falling from over $400 to around $110 and losing approximately $800 billion in value over the course of the year.
According to Forbes, the company’s top market, China, is currently dealing with the ongoing COVID-19 pandemic, which may be contributing to a lack of interest in purchasing Tesla vehicles. In addition, other automakers such as General Motors and Ford have entered the electric vehicle market, while Volvo and Kia are working to meet the “American-made” requirement for the EV tax credit.
New York Times columnist Paul Krugman has questioned whether Tesla was ever truly a strong company, arguing that it is a “one-trick pony” compared to tech giants like Apple and Microsoft that have a market for ongoing purchases.
Tesla is also facing production issues at its Shanghai factory, which could further impact its performance. The company’s delivery numbers for the fourth quarter of 2021, due to be released in early January, are expected to be strong, but any deviation from analysts’ predictions could affect investor confidence.
Tesla’s shares reached an all-time high in November but have since experienced significant losses as CEO Elon Musk has started selling shares and turned some attention to Twitter. The company’s stock has been the fifth-worst performer in the S&P 500 this year, with the index down 20%.
Much of the decline has occurred since September when Twitter shareholders approved Musk’s $44 billion bid to purchase the social media platform. Some analysts have attributed Tesla’s hiccups to Musk’s perceived lack of leadership and credibility, as well as his repeated selling of stock despite previous statements that he was “done” doing so.
“Musk has lost credibility with the broader investment community,” Wedbush analyst Dan Ives said in a note to clients, blaming Tesla’s stock woes on Musk’s various “broken promises” and arguing that Musk is using his “golden child” Tesla to fund not only the initial $44 billion cost of his Twitter acquisition but also to backstop the social media giant’s losses. “The Twitter nightmare continues,” he wrote in a recent research note.
Categories: Business, Economy, International
Economic Left 
Personally disappointed about his Twitter manoeuvres generally speaking.
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