Shares of the electric car maker fell 6.5% to $168.52 in New York on Monday, closing its lowest level since November 2020. Cities near Beijing return to lockdown, putting both production and sales at risk. Tesla also launched a recall of over 300,000 cars This is due to a faulty tail lamp.
Tesla shares have lost nearly half of their value in less than two months as supply chain disruptions mount, raw material costs skyrocket and potential buyers feel the pressure of stubborn inflation and rising interest rates. .
What’s more, Musk’s preoccupation with its newly acquired social media platform has some investors worried that Tesla’s strategy could be derailed.
Cowen analyst Jeffrey Osborne said in a note on Friday, “China’s weakening macro data has already cut prices once to stimulate demand, with heavy exports in the first half of the fourth quarter. It has led to concerns about Tesla,” he wrote.
Analysts added that hedge funds appear to have shifted to a negative bias toward stocks at risk of “loss of interest” in Tesla since Musk acquired Twitter.
The company’s recent share price decline marks a major setback in several milestones achieved during its 2020 and 2021 surge.
Tesla was overtaken by old economic heavyweight Berkshire Hathaway earlier this month to become the fifth most valuable company on the S&P 500 index.
Auto companies that lost their $1 trillion valuation status in late April would only need to fall another 6.5% from their current levels to drop below $500 billion in valuations.
https://www.autoblog.com/2022/11/21/tesla-stock-price-drops-china-covid-twitter/ Tesla stock crash accelerates over recalls, Covid in China, Twitter chaos