Tesla is on track to have its worst year ever, with the electric car maker’s stock price falling 70 percent over the past 13 months.
Tesla investors seem to be growing weary of the round-the-clock Twitter chaos they say has distracted eccentric CEO Elon Musk from the electric car company, which was the main source of his wealth.
Tesla’s share price reached an all-time high of more than $414 in November 2021. It has since fallen 70 percent to $123.15 as of Friday, with shares falling another 1 percent.
Shares remained in the high $380 through April 1, the last day of trading before Musk announced he was buying up shares of Twitter.
Elon Musk has seen $122 billion disappear from his fortune in the past 12 months
Tesla shares are down 69% this year, possibly their worst annual performance since going public in 2010
The company has since lost nearly two-thirds of its value at a time when rival automakers are cutting back on Tesla’s dominant share of EV sales.
Tesla shares are down 69 percent this year, in what could be their worst annual performance since going public in 2010 as investors worry Twitter is eating up too much of the billionaire’s time.
This week, Tesla increased the discounts it offers on its two top-selling models, a clear indication that demand for its electric vehicles is slowing.
The Texas company began offering a $3,750 incentive on its Model 3 sedan and Model Y SUV on its website earlier this month, but on Wednesday the discount doubled to $7,500 for those who take delivery between now and December 31. .
The rare discounts follow a series of price hikes by Tesla in recent years that have caused supply chain disruption and inflation.
Dan Ives, an analyst at Wedbush, said: “This is a sign of demand cracks and not a good sign for Tesla heading into the year end in December. EV [electric vehicle] competition is increasing across the board and Tesla is seeing some headwinds in demand.”
Musk dumped $2.58 billion in Tesla stock last week and has sold nearly $23 billion worth of shares of his car company since April when he began building a position on Twitter.
Tesla is heading into its worst year ever, with its share price down 70% in the past 13 months
Model Y SUV, one of Tesla’s best-selling cars, will be offered at a significant discount until the end of 2021
Tesla’s share price fell off a cliff after the company slashed prices again in the US
A significant portion of that proceeds have been used to fund his acquisition of the $44 billion dollar social media company, which has been marked by chaos since he took over.
Hundreds of billions of dollars have been wiped from the value of his 13.42 percent stake — and he’s no longer the richest man in the world
Hundreds of billions of dollars have been wiped from the value of his 13.42 percent stake — and he’s no longer the richest man in the world.
Tesla’s sell-off came as global markets plunged into the red as hopes of a Christmas rally before Christmas faded.
On Friday, Musk said he will not sell shares in Tesla for 18 months or more in an apparent effort to comfort shareholders who have seen the stock lose nearly half of its value since the CEO’s purchase of Twitter in October.
“I’m not selling stock for the next 18 to 24 months,” Musk said during an audio-only Twitter Spaces group call.
As for Musk’s involvement with Twitter, it had already been suggested that he intended to run the company only temporarily, and last month he told a court he intended to find someone else to do the top job.
Warning that Twitter had “goed on a rampage since May,” he tweeted, “The question isn’t finding a CEO, the question is finding a CEO who can keep Twitter alive.”
Tesla investors seem to be growing weary of the 24-hour Twitter chaos they say has distracted eccentric CEO Elon Musk from the electric car company, which was the main source of his wealth
His brief time in charge has been mired in controversy, including the firing of half the company’s staff and allowing banned users like Donald Trump back onto the site.
The latest furore came over the ban on users from promoting links to other social media platforms, such as Facebook and Instagram. Within 24 hours, Musk reversed the decision and apologized, saying all “major policy changes” from now on would be put to a public vote.
The first of these appears to be when he asked his 122 million followers last Sunday if he should step down as CEO.
When it became clear where the poll was headed, Musk tweeted, “As the saying goes, be careful what you wish for because you could get it.” Those who want power are those who deserve it least.’
The Tesla and SpaceX tycoon has followed Twitter polls in the past and likes to quote the phrase “vox populi, vox dei,” Latin for “the voice of the people is the voice of God.”
The poll came a week after Musk fell to second on a Forbes list of the world’s richest people, as Tesla’s share price continued to fall.
The end of the assembly line where a quality control inspection takes place at Tesla Motors at California’s only complete car manufacturing plant