Tesla Loses Nearly $1 Trillion in Market Capitalization: Biggest Drop Since 2016
Cold start to the year for Tesla: Nearly $1 trillion has vanished Tesla's stock, which skyrocketed in 2023, has experienced a dramatic fall in early 2024. That's according to Fortune, which notes that the electric car maker's market capitalization has declined by nearly a trillion dollars since the New Year. Agenda: Swedish inflation - Investor reports Keep track of this week's key economic events
In 2023, Tesla's market capitalization increased by almost 130 percent, to about 8.128 billion SEK
But the start of the year has led to a sharp downward revision of the share valuation.
The 11.9 percent decline has wiped out about $967 billion in value for Elon Musk's electric car company, according to US business magazine Fortune.
Rental car giant Hertz has scaled back its electric car ambitions, selling off over 600 Tesla cars from its fleet.
Tesla has also been forced to cut prices in the Chinese market again, where Chinese company BYD has now overtaken the Texas-based company as the world's largest manufacturer of electric cars.
The stock's decline is the biggest since early 2016.
In the latest quarterly report, Tesla reported a significant drop in gross margin.
"We are in a downturn for electric cars, exacerbated by competitive dynamics," Ivana Delevska, chief analyst at Spear Invest, told Fortune.
Tesla is among the companies forced to find new delivery methods after rocket attacks on ships in the Red Sea.
Elon Musk, who owns 13 percent of Tesla and holds a large number of options, remains the world's richest person despite this year's downturn, with a fortune estimated by Forbes at around $2.6 trillion.
