Tesla shares fell to their lowest price in more than two years as the electric carmaker plans to shorten its production cycle and investors worry about how much time Elon Musk is devoting to managing Twitter. Huh.
Musk emailed Tesla employees not to “get bogged down by the whims of the stock market” and that Tesla would be the most valuable company on Earth in the long run.
“Please go out for the next few days and help with deliveries if you can. It will make a real difference!” he said in the email.
“BTW, don’t get too bogged down by the whims of the stock market. As we continue to demonstrate outstanding performance, the market will recognize it,” he said.
“Long term, I firmly believe that Tesla will be the most valuable company on Earth!”
The car company’s market value was wiped off $720bn (£599bn) – Tesla stock could be bought at $108.71 (£90.45) per share on Wednesday afternoon, a low not seen since August 2020 and a high not seen since November 2021 at $407.36 (£338.93) per share.
A share price that declined 70% during the year, arguably one of the five biggest losers in the S&P 500 index of 500 large US-listed companies.
While the value of US stocks fell over 2022, the benchmark loss was 20%, which was far greater than Tesla’s share loss.
Musk took the reins of the social media company in October this year after he halted his legal battle over the number of alleged bot accounts on the site and completed a deal worth around $44bn (£36.6bn). His tenure has seen thousands of job cuts and an overhaul of operations at the site.
Investors are concerned that the buyout has drawn too much attention to the world’s former richest man as he steps into the role of chief executive officer of Twitter.
Tesla’s fortunes have been mixed as it plans to slow production at its Shanghai factory but boost profits, posting a profit of $3.3bn (£2.74bn) in its latest earnings report for the third quarter of 2022 has continued.
Reuters reported that the plant is to enter an extended Lunar New Year shutdown, adding to the experience this month.
This is not the first time that production will be slow as the manufacturer has missed its production target for the third quarter of this year despite producing a record number of cars.
given the rise in COVID-19 cases across ChinaWhere some Tesla factories are located, it is expected that it will take time to ramp up production.
The company also predicted in its latest earnings report that battery supply chain constraints will be the main factor restraining growth in the electric vehicle market in the medium and long term.
In addition to slowing production, investors are equally concerned about weak demand and increasing competition in the electric vehicle market as traditional carmakers switch to electric production.
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