Tesla has lost over $800 billion in market value in the past year — a decline fueled by Musk’s sloppy work on Twitter
Tesla’s share price fell to $110.55 on Tuesday, its lowest price since September 2020, and the drop in shareholder value could represent the company’s worst performance since its debut on public markets.
Despite the value of Tesla’s stock reaching a 52-week high of $402.67 in March, the 9-month decline has cost the company more than 800 billion in market value over the past year. The electric vehicle company is underperforming a depressed tech market, which is down 40.8 percent year-to-date, by nearly 30 points, hitting multi-year lows on a near-daily basis. In mid-December, Musk sold more than $3 billion in Tesla stock, parlaying the sale into the stock worth more than $40 billion he̵[ads1]7;s unloaded this year.
If the bearish year experienced by tech companies wasn’t enough to worry Tesla investors, Musk’s tumultuous acquisition of Twitter has sent confidence in the billionaire’s ability to successfully manage both companies down the drain. The seriousness of the situation is indeed sinks in.
Prominent investors in Tesla have called on Musk to shift his focus back to the flagship company and appoint a successor to manage Twitter’s day-to-day operations. After asking Twitter users whether he should remain in charge of Twitter — and being roundly rejected by voters — Musk announced that he would step down as CEO of Twitter as soon as he found a suitable replacement. Progress on that front has not been announced.
Despite Musk’s virtual full-time devotion to managing Twitter at the expense of Tesla, both companies suffer from his divided attention. Musk has made a series of executive content moderation decrees that have backfired spectacularly, including arbitrarily banning journalists, penalties for promoting other social media accounts, and launching Twitter blue as a paid verification service that artificially boosts subscribers’ content over non- – paying users. The resulting chaos has seen Twitter lose more than half of its top advertisers, and the platform is preparing to face a potential barrage of lawsuits from former employees, unpaid suppliers and even international government bodies.
Earlier this month, Tesla investor Joe Cirincion Musk accused of “killing the company with his antics”, but the collapse of Tesla’s financial value may mean that Musk has inadvertently killed two birds with one stone.