Tesla has lost more than $800 billion in market value in the past year — a decline fueled by Musk’s shoddy work on Twitter
Tesla‘s share price plummeted to $110.55 on Tuesday, its lowest price since September 2020, and the drop in shareholder value could be the company’s worst performance since debuting in the public markets.
Despite the value of Tesla’s stock reaching a 52-week peak of $402.67 in March, the 9-month drop has cost the company more than $402.67. 800 billion in market value in the last year. The electric vehicle business is underperforming in a depressed tech sector market, which is on the decline 40.8 percent year to dateThrough almost 30 points, hitting multi-year lows on an almost daily basis. In mid-December, Musk sold more than $3 billion in Tesla stockcontinuing sales on the more than $40 billion in stock he sold this year.
As if tech companies’ bearish year wasn’t enough to worry Tesla investors, Musk’s tumultuous takeover of Twitter has shattered confidence in the billionaire’s ability to successfully manage both companies. The seriousness of the situation is in fact sink.
Prominent investors in Tesla have pleaded with Musk to shift his focus back to his flagship company and appoint a successor to manage Twitter’s day-to-day operations. After survey of Twitter users on whether or not he should remain in charge of Twitter — and because he was thoroughly rejected by voters — Musk announced that he would step down as CEO of Twitter once he found a suitable replacement. Progress in that area has not been announced.
Despite Musk’s virtual full-time commitment to running Twitter at Tesla’s expense, both companies suffer from his divided attention. Musk has created a series of executive content moderation decrees that have backfired spectacularly, including the arbitrary ban on journaliststo punish promotion of other social media accounts, and the launch of Twitter Blue as a paid verification service that artificially inflates subscriber content over non-paying users. The resulting chaos more than lost Twitter half of its top advertisersand the platform is preparing for a possible barrage of lawsuits from former employees, unpaid sellerseven international government agencies.
Earlier this month, Tesla investor Joe Cirincion reported accused Musk of “killing the company with his antics”, but the collapse of Tesla’s financial value may lead Musk to accidentally kill two birds with one stone.