- Tesla stock sank 5.5% to $210 on Thursday, wiping out $39 billion in market capitalization and marking the 11th-largest daily percentage drop of 2023 for the volatile stock.
- The slip followed an initiation of coverage of Tesla by HSBC analyst Michael Tyndall at a sell rating, valuing the stock 21% below its current price at $133.
- Also sliding were fellow American electric car maker stocks Rivian and Lucid after the pair each reported earnings which disappointed investors, with each company on track to burn through billions of dollars in cash this year.
- It was a down day overall for the broader market but less painful than for the EV stocks, with the S&P 500’s 0.8% loss its steepest in two weeks.
- Tyndall named Musk as a “risk” for Tesla’s future stock performance, though not because of the oft-criticized antics he’s known for outside of Tesla.
- Musk remains the wealthiest person on earth with an estimated net worth of $223.7 billion, though that remains about $100 billion below his peak fortune of $320 billion achieved in November 2021
Musk, who owns about 13% of Tesla shares, lost $8.7 billion Thursday, a more than $7 billion larger decline than that of any other billionaire, according to Forbes’ calculations. Musk remains the wealthiest person on earth with an estimated net worth of $223.7 billion, though that remains about $100 billion below his peak fortune of $320 billion achieved in November 2021, when Tesla was valued at over $1.2 trillion.
Tyndall named Musk as a “risk” for Tesla’s future stock performance, though not because of the oft-criticized antics he’s known for outside of Tesla. Instead, Tyndall said Musk’s “prominence presents a considerable ‘single man’” risk for Tesla, referring to the long-term challenges faced by companies whose success is inextricably linked to a single leader.
20%. That’s how much Tesla shares are down over the last month. Much of the drop came after the company missed analyst forecasts for quarterly profit and sales in its October 18 earnings report. The stock remains up 94% year-to-date.
Tesla’s stock experienced a significant stumble, resulting in a notable decrease in the wealth of billionaire CEO, Elon Musk. Tesla CEO Elon Musk’s fortunes have faced a substantial blow as the company’s shares stumbled following an analyst downgrade and disappointing quarterly reports from smaller electric vehicle rivals.
Tesla’s stock price took a nosedive on Thursday, falling 5.5% to $210, after HSBC analyst Michael Tyndall initiated coverage of the stock with a sell rating and a target price of $133. Tyndall’s downgrade is the latest sign that investors are becoming more cautious about Tesla’s stock, which has been volatile in recent months.
The sell rating comes at a time when Tesla is facing a number of challenges, including increasing competition from rivals, rising costs, and supply chain disruptions. The company is also facing scrutiny from regulators around the world over its self-driving technology and safety concerns.
According to Forbes Magazine, some other electric vehicle stocks are sliding, like American electric car maker stocks Rivian (shares down 10% on Thursday) and Lucid (down 5%) after the pair each reported earnings, which disappointed investors Tuesday, with each company on track to burn through billions of dollars in cash this year.
As per the Forbes valuation, Mr Musk, who owns about 13% of Tesla shares, lost $8.7 billion Thursday, a more than $7 billion larger decline than that of any other billionaire, according to Forbes’ calculations. Musk remains the wealthiest person on earth with an estimated net worth of $223.7 billion, though that remains about $100 billion below his peak fortune of $320 billion achieved in November 2021, when Tesla was valued at over $1.2 trillion.
(With inputs from agencies)
