Elon Musk’s Tesla stock has hit a two-year low

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Tesla never stops falling. The US carmaker has lost nearly 70% of its stock market value this year, and its stock fell more than 11% on Tuesday (December 27). The automaker, owned by businessman Elon Musk, achieved one of the worst performances of the year in this sector.

The extent of the decline surprises and worries shareholders in particular. Tesla used to be at its peak on Wall Street with a share of $380 in November 2021. However, it fell to $109 on Tuesday, December 27, the lowest level in more than two years.

There are several reasons for this impressive autumn. Primarily, the acquisition of Twitter by its owner Elon Musk did not calm the markets. To finance the takeover of the social network, the billionaire had to sell part of its shares from Tesla. This botched operation spilled over into the entire Musk galaxy. According to Victoria Scholar, chief investment officer at Interactive Investor, investors are also worried that Elon Musk is spending too much time on Twitter at the expense of the car group.

If the title of the car manufacturer fell to 109 dollars at the close of the New York Stock Exchange, it was in response to information from Reuters that set fire to the powder. Tesla actually has plans to reduce production at the Shanghai factory in January 2023 in anticipation of a drop in demand in China, but the largest car market in the world.

Serious concerns among investors

For Thomas Hayes, president of Great Hill Capital, Tesla faces a “ perfect storm » high interest rates, sales at tax losses and releases of certain funds that held large amounts of the producer’s shares.

Another blow for Tesla: The prices of its used cars are falling faster than other manufacturers’ prices, which has an immediate impact on the demand for the group’s new cars. After a disastrous year 2022, investors are therefore deeply worried and are calling for a real captain to return at the helm of the Tesla ship… whether it is Elon Musk or not.

► Also listening: Decryption – Elon Musk, a billionaire with unlimited ambition?

(And with AFP)

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