Shares of Tesla (NASDAQ: TSLA.US ) are on track for their worst month ever, as investors fret about weak demand for electric vehicles and CEO Elon Musk’s focus on Twitter. The company’s website shows that it will offer a $7,500 discount on Model 3 and Model Y electric vehicles delivered in the United States this month.
Zhitong Finance APP learned that on Thursday, Tesla’s stock price fell by nearly 10%, hitting the lowest level since September 2020.As of the close, the stock fell 8.88% to $125.35
Tesla’s shares have plunged nearly 36% in December, compared with a 22% drop in March 2020 when the coronavirus outbreak roiled financial markets.
Musk’s $44 billion acquisition of Twitter in October has seen confusion and controversy, with some investors questioning whether the billionaire’s energy has been diverted too much to Twitter to properly manage Tesla. Musk has also sold nearly $40 billion worth of Tesla shares this year, exacerbating pressure on Tesla shares as investors fear he may sell more to keep Twitter afloat.
In addition, Tesla said in October that it does not expect to meet its vehicle delivery targets this year, and analysts worry that rising interest rates and a struggling economy will dent demand.
When Tesla was included in the S&P 500 Index in December 2020, its market value exceeded US$600 billion, making it the sixth largest listed company in the United States at that time. Since then, its market value has shrunk to about $400 billion, slipping to eighth place on Wall Street’s list of the most valuable public companies, behind Exxon Mobil (XOM.US ).
Recently, Volkswagen (VWAGY.US), Toyota Motor (TM.US), Hyundai Motor (HYMTF.US), General Motors (GM.US), Ford Motor (F.US) and BMW (BMWYY.US) The combined market capitalization surpassed Tesla’s market capitalization, the first major reversal in more than a year after Tesla’s stock soared nearly 2,000% from its 2018 to 2021 high. So far, Tesla is still far ahead when it comes to EV sales.
With analysts increasingly concerned about Tesla, its market capitalization is just over $800 billion, down from $1.1 trillion in April, according to Refinitiv data, based on analysts’ median price target for its shares.