Tesla Shares Dip for Record 7th Week, Lose $800bn Since Peak
In a shocking turn of events, shares of Elon Musk-led Tesla have recorded the longest losing streak in the company’s history, losing over $800 billion in market capitalization since the stock peaked at almost $480 on December 17. This dismal performance has left investors and analysts alike scratching their heads, wondering what could be causing the sudden downturn in the electric vehicle giant’s fortunes.
According to CNBC, Tesla shares have dipped for seven straight weeks since Elon Musk joined US President Donald Trump’s government. The latest week’s performance was no exception, as shares ended the week down over 10%. This is a stark contrast to the company’s previously impressive growth, which had seen its stock price soar to new heights in recent years.
So, what could be behind Tesla’s sudden decline? There are several factors that could be contributing to the company’s struggles. One possibility is the ongoing competition in the electric vehicle market. With more and more companies entering the fray, Tesla is facing increasing pressure to innovate and stay ahead of the curve. Additionally, the company’s lack of progress on its Autopilot technology and its struggles with production and delivery have also raised concerns among investors.
Another factor that could be playing a role is the changing regulatory environment in the US. With the departure of Tesla’s biggest fan in the White House, Elon Musk is now facing a more skeptical administration when it comes to his company’s ambitions. This could make it more difficult for Tesla to secure the government support and subsidies that it has relied on in the past.
It’s also worth noting that Tesla’s valuation has become increasingly disconnected from its underlying fundamentals. The company’s stock price has been driven largely by speculation and hype, rather than concrete financial performance. This has made it more vulnerable to market fluctuations and investor sentiment.
Despite these challenges, Tesla remains one of the most exciting and innovative companies in the world. With its electric vehicles, solar panels, and energy storage products, the company is well-positioned to play a major role in the transition to a more sustainable energy future.
However, for now, investors are likely to remain cautious, and the company’s stock price will likely continue to fluctuate in response to market conditions and news. As the company works to address its challenges and deliver on its ambitious goals, it will be important to keep a close eye on its progress and adjust our expectations accordingly.
News Source:
https://www.cnbctv18.com/market/tesla-shares-drop-7-weeks-elon-musk-doge-us-government-19570830.htm/amp
