Tesla stock has plunged by nearly 50% since late 2021

Tesla stock has plunged by nearly 50% since late 2021

Tesla hasn’t been having a good year so far financially, nor has its boss Elon Musk. The EV maker has seen US$558 billion (RM2.45 trillion) wiped off since November last year, and from a market valuation viewpoint is now worth US$663.9 billion (RM2.91 trillion), down more than 45% from a peak of US$1.22 trillion (RM5.35 trillion), Drive reports.

While the slide began last year, much of the losses have been recent, with the company losing around US$342 billion (RM1.5 trillion) in market capitalisation since Musk disclosed his intention to buy Twitter in mid April. The decline is also as a result of multiple internal and external factors, which might have caused jitters amongst investors.

These include unfavourable market conditions, failure to deliver on product timelines as well as lawsuits accusing the company of racial discrimination, among others. While the company’s models accounted for three-quarters of all EVs sold in the US last year, nothing new is on the immediate horizon.

Earlier this year, Musk confirmed that no new models will commence deliveries to customers before the end of 2022. The Cybertruck has been delayed many times and is not expected until next year at the earliest, and the second-gen Roadster is also behind schedule, now due out only in 2023.

Tesla stock has plunged by nearly 50% since late 2021

While Musk’s bid to buy Twitter hasn’t helped his company’s stock price, neither has allegations made about his conduct. It was reported that Tesla’s share price dropped by 6.4% after claims of sexual misconduct against him emerged, wiping off US$10 billion (RM43.9 billion) of his worth in just a single day last week.

According to the Bloomberg Billionaires Index, he was worth about US$212 billion (RM921.7 billion) last Thursday. After the allegations came out, his wealth dropped to around US$201 billion (RM882.2 billion), Bloomberg reported. Musk has refuted the allegations made against him, calling them “wild accusations” and “utterly untrue.”

Despite this, he remains top of the index, well ahead of Jeff Bezos, who is currently worth around US$130 billion (RM570.7 billion). Additionally, despite the plummeting of its stock price, Tesla remains the world’s most valuable automotive brand, also by a large margin, remaining ahead of Toyota, BYD and Volkswagen, all in order.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Roman Abromovich on May 23, 2022 at 6:55 pm

    This super rich bugger,we don’t give a damn.Why people so gian over him?

    Like or Dislike: Thumb up 4 Thumb down 1
    • Civic Turbo 2018 on May 23, 2022 at 11:24 pm

      Ikut beliau bitcoin, dogecoin, twitter dan mee-goreng

      Like or Dislike: Thumb up 1 Thumb down 1
    • Western Star on May 24, 2022 at 1:25 am

      Apparently he was supposed to be the bright shining light when Tesla chose Indonesia over Malaysia, giving them more reasons to whack Malaysia but now the cracks have opened and they had fallen thru the gaps, getting stuck in their spin and hatred.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Casual reader on May 23, 2022 at 7:18 pm

    And some peeps wanna make him our PM, haha. If our PM ver lost 50% of our wealth they would demand his head instead.

    Like or Dislike: Thumb up 11 Thumb down 1
  • Western Star on May 24, 2022 at 1:22 am

    [unfavourable market conditions, failure to deliver on product timelines as well as lawsuits accusing the company of racial discrimination, among others]

    That is all BS. The reason why their stocks plunge is cause by the bulk selloff from elitist left leaning activist capitals stockholders to punish Elon Musk for his elitist right leaning forced buyout of Twitter, a well known leftist mouthpiece. This is simply an elitist vs elitist fight.

    Like or Dislike: Thumb up 8 Thumb down 2
    • Yes. Fully agree. When a person or company destructive the norm and at the top, there will be many spanners throw to bring them down; either ethically and other wise

      Like or Dislike: Thumb up 0 Thumb down 0
  • Even after plummeted by 50%, the stock price is still way way over valued. (Current Tesla PE ratio 90 while average S&P 500 PE Ratio 20)
    Other auto players had caught up with their own EV and Tesla’s dominance will slowly diminished.
    Tesla’s stock will just continue to fall.

    Like or Dislike: Thumb up 0 Thumb down 1
  • Syed Fadzli on May 25, 2022 at 10:14 pm

    VW CEO says they will overtake TESLA by 2025

    Like or Dislike: Thumb up 0 Thumb down 0
 

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