The action of Tesla has just experienced a new significant decline on the stock market.
And he followed a new tweet from Elon Musk. Something to give food for thought to those who think that Tesla is the collateral victim of the Musk epic on Twitter.
One tweet is enough
Tesla is really looking gray at the end of the year. The world number 1 in electric vehicles has a string of bad news. Hiring is thus frozen, and layoffs should take place at the beginning of next year.
But the automaker is also suffering the backlash from Elon Musk, its boss, on the social network Twitter. Some messages from the billionaire can cost the company dearly, such as this simple ” Epic Thread posted in response to a thread by Dmitry Medveded in which the former president of Russia outlined his predictions for the future of the Western world.
And even if a few hours later, the ex-richest man in the world made a point of clarifying his thought, the market quickly reacted (and very negatively) to what was perceived as a validation of the Russian politician . Tesla has paid the piper, and its title fell on Tuesday by 11.41%, to 109.1 dollars.
Tesla on a slippery slope
We can also note a halving of the price of Tesla since the end of October and the takeover of Twitter by the South African businessman. Even if correlation is not causation, it’s hard not to see a link.
Still, other phenomena can be invoked to account for this fall. Rising interest rates, Tesla’s difficulties in autonomous driving, ever-increasing competition from Chinese brands like BYD in the Middle Kingdom (the biggest market for electric vehicles) are all reasons which may explain this winter decline.
Especially since Tesla’s stock price has experienced incredible growth with the COVID crisis. Trading at around $30 in March 2020, the stock crossed the $400 threshold in November 2021 and has since been constantly depreciating. Will Elon Musk be able to plead in 2023 the deflation of the bubble to justify Tesla’s results?
Sources: Reuters, BFM Stock Exchange, French Radio
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