Worth three quarters less
Will Tesla Stock Fall Below $100 Soon?
A good start to the year is different: Tesla shares fall significantly on the first trading days. Tesla stock could be worth less than $100 for the first time in a long time. Elon Musk is also losing a lot of money because of this.
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Tesla has lost three quarters of its market value in the last twelve months.
Milena KalinEditor Economics
Tesla produced 439,000 cars in the last quarter of 2022. A new record! Still, investors are not satisfied.
Tesla boss Elon Musk (51) promised too much. He predicted an “epic” fourth quarter and full-year growth of 50 percent. In reality, Tesla achieved 40 percent growth in 2022.
On Tuesday – the first day of trading in the new year – Tesla shares therefore lost 12 percent in value. A share cost around 108 francs at the start of trading on Wednesday. The last time the stock was worth so little was in the summer of 2020. In December 2022 alone, the share lost 40 percent in value.
Twitter takeover is costing Tesla dearly
The share price knows only one direction in 2022: down. The reason for this is the Twitter takeover by Elon Musk. To fund the $44 billion purchase, Musk had to sell Tesla shares, flooding the stock markets. Tesla has lost three quarters of its value since the takeover bid in April. Added to this is the generally bad mood on the markets.
Musk had to bleed too. Since November 2021, the Tesla boss has lost $200 billion – more than anyone before him. But that also has to do with the fact that a large part of his wealth consists of Tesla shares. Musk now has to fear for the title of the richest man in the world.
The Tesla owner, with his special style, is not well received by everyone. According to a poll he launched himself, the Twitter community doesn’t want him as CEO. 57.5 percent of the 17 million poll participants voted against him. Musk is therefore looking for a successor.
$100 mark in sight
This also allows him to cater to Tesla investors who want him to care more about this company. They punish Musk with falling prices. The $100 mark is getting closer and closer. For comparison, at peak times in late 2021, the stock was worth over $400.
But don’t be fooled either. Although Tesla shares have plummeted, the company is still worth $389 billion. This exceeds the combined value of the global car groups Toyota, General Motors, Stellantis and Ford.