This year, Tesla shares have lost 65% from the beginning of 2022, a market value loss of more than $700 billion. This is no surprise since investors are losing faith in Musk after he took over Twitter.
However, Elon Musk told Tesla employees “Don’t be too bothered by stock market craziness. As we demonstrate continued excellent performance, the market will recognize that”. But the reality is different and investors see a decreased demand and vehicle production.
Elon Musks’ political tweets and his handling of Twitter also hurt the electric car brand according to investors. Tesla also couldn’t deliver its promise that it would increase production by 50% end of this year.
Several mainstream car manufacturers are coming out with EVs and hybrids and Tesla no longer has autonomy in the EV market. Used Teslas are performing much worse than expected in the market as well.