"Tesla Oh No" Drops Another 11%... Falls Out of Top 10 Market Cap Again

[Asia Economy New York=Special Correspondent Joselgina] Tesla, the American electric vehicle company that once belonged to the trillion-dollar market cap club and ranked in the top 5, has finally fallen out of the top 10 in market capitalization. Now, even the '100Sla,' which signifies the $100 stock price level, is in jeopardy.

On the 27th (local time) in the New York stock market, Tesla's stock price closed at $109.10, down 11.41% from the previous session. This closing price is the lowest since August 2020. Tesla's stock price has been declining for seven consecutive trading days, marking the longest downward streak since September 2018. The drop over the past seven trading days is about 31%, and the decline since the beginning of the year exceeds 69%.

[Image source=Reuters Yonhap News]

Based on the closing price that day, Tesla's market capitalization was approximately $344.5 billion. Following its fall to 10th place in market cap on the 23rd, it dropped further to 16th place on this day. Tesla, which was listed on NASDAQ in 2010, became the first automobile company to join the trillion-dollar market cap club at the end of 2021, but it has shrunk rapidly within just one year. The Wall Street Journal (WSJ) reported, "Tesla has continued its downward trend and has fallen out of the top 10 in market capitalization," adding, "It is recording the worst performance in history this year."

The background of the stock price decline includes owner risks that emerged after CEO Elon Musk's acquisition of Twitter, as well as fundamental concerns about a decrease in electric vehicle demand. Amid ongoing recession fears, competitors are rapidly advancing, especially in major markets such as China and Europe, signaling a slowdown in sales.

In response, Tesla abandoned its long-standing 'no discount' policy and recently adopted unusual discount policies, but even these efforts are facing difficulties. Major foreign media reported that the average price of used Tesla cars in the U.S. last month was $55,754, down 17% compared to July. This decline far exceeds the overall average drop of 4%. Furthermore, Tesla is currently facing a U.S. Senate investigation over allegations that it used parts produced in Xinjiang, China, where imports have been banned.

Forbes stated, "Tesla's stock price suffered significant losses after CEO Musk began selling shares and shifted his attention to Twitter," adding, "Most of the stock price decline was confirmed after Twitter shareholders approved Musk's acquisition proposal at the end of September." The outlet also noted, "Tesla's Q4 delivery numbers are expected to be released in early January, and if they fall short of the expert forecast of 422,000 units, investors may become even more unsettled."

On this day, reports that Tesla's Shanghai factory would be closed longer than usual dealt a direct blow, causing an over 11% plunge. Considering that the NASDAQ index, which Tesla belongs to, fell 1.38% and the Dow Jones Industrial Average closed higher on the same day, Tesla's sharp decline stands out even more.

This content was produced with the assistance of AI translation services.