FT: Tesla lost $85 billion in market value in a week

Tesla shares have fallen 18% over the past week, their value has fallen to the lowest level since March 2020, and the company has lost $ 85 billion of its market value, reported newspaper Financial Times (FT).

Tesla shares on Friday fell to $123.15, the company’s market capitalization fell below $400 billion, although, as the newspaper notes, Tesla was worth $1.2 trillion at the beginning of the year. The FT attributes this situation to the sale of shares by company founder Elon Musk, who needs money after the takeover of Twitter. In addition, concerns are growing among investors about the prospects for sales of electric vehicles. So, on December 22, Tesla shares lost 9% of their value against the background of the company’s announcement of a $7,500 discount on the two best-selling models, FT points out.

Musk, who recently lost his status as the world’s richest man, has sold almost $23 billion in shares since he announced the $44 billion acquisition of Twitter. Despite a pledge in April to stop doing so, he has subsequently sold shares three times, most recently last week. The sale has angered major investors who believe the entrepreneur has abandoned the automaker to focus on his new purchase.

According to Bloomberg, the businessman lost about $122.6 billion in 2022, which is more than the amount he earned in 2021. Musk began selling Tesla shares a few weeks after the automaker reported a profit of $3.3 billion and revenue of $21.45 billion for the third quarter, falling short of Wall Street’s expectations, leading to a 4% drop on the day.

Earlier this week, CNBC, citing sources informedthat Musk is actively looking for someone to replace him as CEO of the company. The channel recalled that Musk publicly stated in November that he expected to reduce the time he devotes to managing Twitter and find a new CEO. The Washington Post also drew attention to the dissatisfaction of investors that Musk pays too much attention to Twitter, which could harm SpaceX, which he leads, and especially Tesla.

Musk officially became the owner of Twitter on October 27, the deal was worth $44 billion. In his account, the businessman explained the purchase of the social network with a desire to create a platform “where a wide range of beliefs can be discussed in a healthy environment without resorting to violence.”