The stock has lost 17% since the start of the year. (©AFP)
The world’s largest auto cap erased $280 billion in value in a month. And it may not be over.
Bad times for Tesla on the stock market. For the first time since 2016, the automaker, world number one in electric cars, profitable since 2019, is in the red on the stock market. Its action has lost 17% since the start of the year.
In fact, the decline is concentrated in the past month. Since April 4, Tesla has lost 23% of its value, a wipe of 277 billion dollars of market capitalization erased, the equivalent of six
delisted in less than a month.
The date is not trivial. On April 1, Elon Musk, the group’s boss and largest shareholder, revealed his interest in Twitter and taking a 9% stake. Since then, he has made an offer of $54.20, valuing the social network at $44 billion. The financial terms have been accepted by the board of the microblogging site. This now requires Elon Musk to formally build his offer for which he has obtained bank financing.
A pool of major international banks – including BNP Paribas and Société Générale – has planned to finance the South African-born billionaire for around 25 billion dollars, who plans to bring in some 21 billion dollars in cash from his own pocket.
Sustained downward pressure?
However, the episode fuels a downside risk on Tesla shares. A pressure that could be lasting.
Read more on LeRevenu.com