Tesla has lost more than $800 billion in market value in the past year – a decline fueled by Musk’s botched work on Twitter
Tesla stock price fell to $110.55 on Tuesday, its lowest price since September 2020, and the drop in shareholder value could represent the company’s worst performance since its public markets debut.
Although the value of Tesla shares hit a 52-week high of $402.67 in March, the 9-month decline has cost the company more than $800 billion in market value over the past year. The electric vehicle company is underperforming a depressed tech sector market, which is down 40.8% year-to-date, nearly 30 points, and hitting multi-year lows on an almost daily basis. In mid-December, Musk sold more than $3 billion worth of Tesla stock, adding the sale to the more than $40 billion worth of stock he has offloaded this year.
If the bearish year experienced by tech companies wasn’t enough to worry Tesla investors, Musk’s tumultuous acquisition of Twitter has bolstered confidence in the billionaire’s ability to successfully run both businesses. The gravity of the situation is, in fact, to sink.
Prominent Tesla investors have pleaded with Musk to refocus on his flagship company and appoint a successor to handle Twitter’s day-to-day operations. After polling Twitter users on whether or not he should remain in charge of Twitter – and being completely rejected by voters – Musk announced that he would step down as CEO of Twitter as soon as he found a replacement. adequate. No progress on this front has been announced.
Despite Musk’s virtual full-time dedication to running Twitter at Tesla’s expense, both companies are suffering from his split attention. Musk issued a series of executive orders on content moderation that backfired in spectacular fashion, including the arbitrary banning of journalists, the criminalization of promoting other social media accounts, and the launch of Twitter blue in as a paid verification service that artificially boosts subscriber content over non-subscriber content. -paying users. The resulting chaos has caused Twitter to lose more than half of its top advertisers, and the platform is bracing for a potential barrage of lawsuits from former employees, unpaid vendors and even organizations. international governments.
Earlier this month, Tesla investor Joe Cirincion accused musk of “killing the company with his antics,” but Tesla’s collapse in financial value may cause Musk to inadvertently kill two birds with one stone.
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