Elon Musk Loses Almost $50 Billion as Tesla Stock Drops by $277 Billion
Tesla (NASDAQ: TSLA) stock opened 40 points up, at $603, Tuesday morning after a close of $563 on Monday. The dip was the fifth time in as many days that Tesla closed at a loss. Overall in the past month, Tesla has lost $277 billion in market valuation, Yahoo! Finance reported. As a result, CEO Elon Musk’s personal wealth dropped by nearly $50 billion as of last Friday, Reuters reported.
Overall NASDAQ Drop
Tesla wasn’t the only tech — or electric vehicle — stock to fall recently. Overall, Nasdaq has tumbled by more than 10% in the past three weeks. EV manufacturers Nio Inc. and Li Auto also closed down on Monday, with drops of 7.6% and 5.0%, respectively, Yahoo! Finance reported. Nasdaq fell 2.41% at Monday’s close, while the S&P 500 dipped by just over half a point.
Tech stocks, which had been on a relatively consistent rally throughout the pandemic, dropped last week with news of rising yields. Last week, nine out of 11 of the tech-heavy S&P 500’s sectors fell.
Fears of inflation are causing some investors to pull out of high-growth tech stocks and move into other equities, The Street reported. Investors are also moving money into travel, entertaintainment and other industries that may soon begin recovering in light of widespread vaccinations.
Ford vs. Tesla
No doubt, Tesla has faced some challenges lately separate from stock market trends. The global semiconductor chip shortage has affected EV manufactures across the board, Yahoo! Finance reported. Tesla, specifically, shut down its Fremont, California plant for two days in February due to a parts shortage. Meanwhile, rumors flew across Twitter that Musk had died in a battery explosion.
An analysis by Morgan Stanley last week showed that Tesla’s share of the U.S. EV market fell to 69% in February, down from 81% year-over-year, CNN Business reported. Meanwhile, Ford’s new Mustang Mach-E SUV won 2021 North American SUV of the Year at the North American Car, Truck, and Utility of the Year Awards virtual ceremony. Morgan Stanley noted that the Mach-E appears to have taken nearly 100%” of Tesla’s market share loss.
Tesla Fans Hold Tight
Some finance experts believe the Tesla stock dip is just the beginning. However, for many retail investors on Twitter, a sell-off is unthinkable. “I’m not selling!! My precious Tesla stock,” wrote Carlos Possel in a tweet.
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