Elon Musk Tesla Chief Executive Officer. Reuters = Yonhap News
The share price of Tesla, an electric car maker in the US, has fallen below $600 in three months.
Tesla closed at $597.95 on the 5th (local time), down 3.78% from the US New York Stock Exchange. On that day, it plunged 13% during the intraday, and it slipped to the 500-dollar level, recording the lowest level since December 3 of last year. Tesla’s share price fell 11% this week alone, and continued its decline for the longest four weeks since May 2019.
Bloomberg News reported that Tesla’s market capitalization as of the closing price was 575 billion dollars (648 trillion 46 billion won), which has evaporated 234 billion dollars (264 trillion 186 billion won) over the past four weeks. Compared to the market cap of 837 billion dollars (9443 trillion won) at the time Tesla stock price peaked (883.09 dollars) on January 26, 263 billion dollars (296 trillion 92.7 billion won) flew in more than five weeks.
As the stock price fell, Tesla’s CEO Elon Musk’s stock valuation decreased by US$27 billion (30,483 billion won) since the 1st. “Musk has accumulated wealth at the fastest rate in history, but the reversal is happening again,” Bloomberg said.
Bloomberg News announced that traditional industry giants such as GM, Ford, and Volkswagen will aggressively enter the electric vehicle market in recent months, and that rising corporate borrowing costs arising from rising US Treasury rates has raised concerns about overvalued companies like Tesla Analyzed.
Investors also started to reduce the proportion of Tesla holdings. Baron Capital, an asset manager founded by US billionaire Ron Baron, recently revealed that Tesla’s share of its portfolio has become so large that it has sold its stock. Baron Capital has sold 1.8 million Tesla shares since August last year.
Reporter Jang Joo-young [email protected]
