Tesla shares are going through one of their worst moments of their history on the stock market. For varied reasons, its value is decreasing month by month and already has accumulated a loss of 74% compared to November 2021. The situation worsened after the suspension of activities at one of the company's most important plants, located in Shanghai, China.
In 2020, during the first months of the covid pandemic, the electric car manufacturer was able to position itself as one of the most valuable companies in the world, taking advantage of its innovative designs and cutting edge technologies. However, it is currently experiencing one of its worst moments and is on track to close out both the worst quarter and worst month in its history, followed by the worst year.
In addition to the news about the problems at the Shanghai plant, which forced a suspension of production, there was a report about a series of discounts that Tesla is offering to boost sales. These signals spooked investors and, in the month of December alone, it fell 44% (it had never fallen more than 25% in a month).
Musk's distractions
Some analysts also attribute the situation to more general reasons such as the crisis in the global economy and the poor economic performance of China, which led to a decrease in demand and, consequently, in the production of electric cars. However, the spotlight is also on its current CEO and largest shareholder, Elon Musk, who has been sidetracked by other personal business ventures and interests, the most notable of which is the purchase of Twitter.
To finance the purchase of the social network, the South African tycoon sold nearly $40 billion. This action was frowned upon by many of Tesla's investors and as a result, the company's market capitalization reached historic lows of $193 billion.
