Tesla has lost nearly 70% of its value in 2022 - this is why
Published on Dec 29, 2022 at 6:10 AM (UTC-5)
by Alessandro Renesis
Last updated on Dec 29, 2022 at 9:08 AM (UTC-5)
Edited by
Alessandro Renesis
Tesla stock is in free fall, having lost nearly 70 percent of its value since the start of 2022.
On January 1, Tesla was valued at around $1.2 trillion, making Elon Musk the world’s richest man by a considerable margin.
About 12 months later, the electric automaker lost more than $800 billion in market value.
READ MORE: ‘Elon abandoned Tesla’: Billionaire shareholder calls on Musk to step down as CEO
Right before Christmas, Tesla ($TSLA) reported a stock price of $110.55 – the lowest price since the start of Covid.
There are a number of reasons for that.
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The ongoing chip crisis certainly played a role.
As did Tesla’s ‘optimistic’ delivery predictions.
Tesla deliveries
Tesla finally delivered the first SEMI trucks to customers earlier this year.
However, the long-awaited Cybertruck and Roadster are nowhere to be seen, and production has been postponed again and again.
Having said that, most analysts and investors believe that Tesla stock is simply reacting to Musk’s antics.
Elon Musk controversially acquired Twitter for $44 billion in October, and Tesla stock price has been declining since.
Partly because Musk has been selling a significant chunk of his shares to fund the purchase.
But it’s also been pinned on his erratic and eccentric managerial style.
Right after taking over Twitter, Musk fired half of the staff and told the other half to shape up or ship out in a controversial email made public.
After that, Musk ran a poll on Twitter to decide whether or not he should step down as the CEO of Twitter.
Twitters users voted in favor, and so he did agree to step down.
It’s entirely possible he knew this would be the outcome and decided to run the poll to ‘validate’ a decision he’d already made.
But even so, shareholders didn’t really like that, and Tesla stock price went down even further.
2022 wasn’t a great year for tech stocks and the stock market in general.
Here’s to hoping the market will cool off in 2023.
Alessandro is an automotive journalist with 10 years of experience covering supercars, automotive history, emerging vehicle technology, and luxury transportation. He wrote the first article published on SupercarBlondie.com when the website launched in 2022 and has since built a reputation for insightful reporting across the automotive and transportation industries. His expertise is grounded in hands-on experience. Alessandro has driven every Tesla model ever produced, from the original Roadster to the Cybertruck, and regularly covers the latest developments in electric vehicles and automotive innovation. His passion for transportation extends beyond cars, he has even flown a Boeing 787 Dreamliner simulator in Addis Ababa, Ethiopia. His reporting spans everything from classic American muscle cars and rare automotive discoveries to luxury yachts, private aircraft, high-end watches, and cutting-edge vehicle technology. Known for his deep knowledge of automotive history and ability to uncover the stories behind iconic vehicles, Alessandro brings readers a blend of historical context, technical expertise, and first-hand experience.
