Tesla’s (TSLA.US) market capitalization falls below $500 billion for the first time in two years
Zhitong Finance APP learned that the continuous decline in Tesla (NASDAQ:) (TSLA.US) stock price has pushed its valuation to close below the US$500 billion mark for the first time since November 2020. US stocks closed down 2.6% on Wednesday to 156.80 US dollars, with a market value of 495 billion US dollars, a decline of 55% this year. Problems with Tesla’s own operations, including supply shortages, soaring raw material costs and production disruptions, as well as Musk’s acquisition of Twitter, have weighed heavily on the stock. Due to the decline in market value, Musk is no longer the world’s richest man.
The economic outlook for next year has also become less optimistic. On Wednesday, at least two Wall Street analysts were cautious regarding Tesla and the electric vehicle industry in general. Goldman Sachs cut its supply and demand forecast for Tesla to reflect “weak” demand, while Morgan Stanley also warned that Tesla’s braking system is having a serious impact on its electric vehicle demand and lowered the company’s U.S. stock price forecast. Regional sales forecasts.
It is reported that Tesla’s stock price has been hit hard by concerns regarding a potential economic recession and the Federal Reserve’s interest rate hikes, which has triggered investors’ sentiment to sell high-risk and expensive stocks, especially leading to a strong sell-off of technology and growth assets.
While Tesla shares have largely been on the decline since the start of the year, the pullback has intensified over the past few months, with the stock down 41% since the end of September. That compares with an 11 percent gain in the S&P 500 over the same period and a 7 percent gain in the tech-heavy Nasdaq 100 .