Shares of Elon Musk’s automaker fell 29% in less than 10 weeks, closing Wednesday at their lowest level since May.
As a result, Tesla’s market value dropped from nearly $800 billion to just over $550 billion — a total of $234 billion, and as Business Insider points out, it’s more than McDonald’s ($212 billion), Disney ($202 billion) and Cisco ($199 billion) are worth.
That decline is also close to the market capitalizations of Netflix ($259 billion) and Coca-Cola ($257 billion), and exceeds the value of American Express ($158 billion) and Nike ($148 billion). It’s also more than double the value of Starbucks ($104 billion) and more than triple the size of Chipotle ($71 billion), FedEx ($62 billion) and Palantir ($58 billion).
The sharp drop in Tesla shares also saw Elon Musk’s net worth drop by nearly $40 billion this year, below $190 billion. The entrepreneur has now dropped to third place on Bloomberg’s list of billionaires, behind first and then second place Bernard Arnault and Jeff Bezos . .
If compared to the beginning of 2020, Tesla shares have increased almost 5 times. However, they are 60% less than the November 2021 peak, when the automaker was valued at $1.2 trillion.
Among the reasons for the stock’s decline were signs of declining demand for electric vehicles among consumers and car rental companies such as Hertz. Tesla has also been forced to lower prices in the face of fierce competition in China from companies such as BYD.
It’s also worth noting that Tesla’s value is still more than 10 times that of General Motors ($46 billion) or Ford ($49 billion).
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