Tesla is surrounded by difficulties: Stocks fall from more than $ 400 to only $ 200, Elon Musk is still engrossed in Twitter

Tesla is in trouble while CEO Elon Musk is distracted by too many other problems.

Shares of Tesla are down about 50% from their all-time high hit around November of last year. The situation comes amid a sell-off in the US stock market that has hit tech companies hard.

Shares of the electric vehicle maker fell 7.6% to $204.99 a share in Friday trading, reaching a market cap of $642 billion. This is a halving from the November 4 closing record high of $409.97 per share.

The plunge comes amid a broader market downturn, as the specter of a recession shakes investors who are already braced for the effects of rising inflation and higher interest rates. Strong growth stocks take on more risk because of their high valuations.

It’s worth mentioning that the stock drop isn’t Tesla’s only problem. The company is still in trouble: Deliveries in the third quarter were hit by logistical problems, and some analysts warn that rising prices for the company’s vehicles could also hurt demand. demand at some point in time. On top of that, Tesla’s Shanghai factory has faced disruption due to the city’s anti-Covid-19 lockdowns. The company has also been dealing with supply shortages and rising raw material costs, like most other automakers globally.

CEO Elon Musk’s decision to first buy Twitter, then walk away from the deal and announce the acquisition again, is also part of the reason for the company’s stock price. Investors worry that the company’s leadership is getting caught up in too many things.

Source: Bloomberg