Tesla investors are concerned about the side business of its founder, Elon Musk, owner and executive chairman of Twitter since October. And they’re so suspicious of Musk’s abilities to run the electric car business that within five days they’ve caused Tesla’s stock to drop sharply in value on the stock market.
According to the Financial Timesthe automaker has lost, in the last five sessions, about $85 billion (about 80 billion euros at current exchange rates) in market capitalization, signaling that the large investment that Musk is making in the social network of the bird is causing Tesla investors to lose faith in the electric car maker.
Tesla has lost 19.98% in the stock market over the past five sessions, now trading at 123.15 dollars (116 euros). It was the worst week for the company since March 2020, a month in which global markets suffered sharp declines due to the onset of the covid-19 pandemic, recalls the Financial Times. Since the beginning of the year, it has already lost 69% of its market value.
The British newspaper’s calculations show the extent of the decline since January this year, when Tesla was valued at $1.2 billion (€1.1 billion). It is currently worth 385.89 billion dollars (364 billion euros) on the stock market. The approximately 815 billion US dollars lost is equivalent to the value of more than 80% of the North American index which tracks the 500 largest companies in the country, the S&P 500, the newspaper points out.
Another fear of Tesla investors is the deterioration in the outlook for demand for electric cars, at a time when a strong “brake” on growth or even an economic recession are expected in the major world markets. And Tesla showed signs it was having trouble selling cars when it announced a US$7,000 rebate on two models in the United States. Shares of the company reacted by falling 9% on Thursday, according to the newspaper.
Elon Musk, until now best known as the founder and leader of Tesla, has been having fun since October with his new role as executive chairman and owner of Twitter, the short message social network.
Having set out to turn around a network that he believes could go bankrupt, Musk has been very public with the management of Twitter, lay off workers en masse🇧🇷 allowing the return of banned accounts🇧🇷 by suspending many others, including journalists🇧🇷 and fostered structural changes in the network without clear commercial criteria.
It has also sometimes made decisions based on user surveys – one of them deliberated until Musk quit running the network. Based (or not) on the outcome, Musk said he was looking for a new executive chairman who was up to the task. (“someone crazy enough to take office”, in his own words)🇧🇷
In parallel, since April, when it offered to buy Twitter, it has been selling billions of dollars of Tesla shares on the markets, for a total of 23 billion dollars (22 billion euros) The latest dated December 15.the third time, and again agrees not to sell any more Tesla shares for a year.