January 28, 2023

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Tesla stock fluctuated in the pre-E24 trade

On Tuesday, Elon Musk’s fortune shrank by NOK 86.6 billion. On Wednesday, Tesla stock fluctuated in a pre-trade.

The collapse of Tesla has more than halved Elon Musk’s fortune this year.
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The electric vehicle manufacturer had a rough year and a tough December for the stock market.

Tesla shares have fallen 14 out of 18 trading days so far in December. If Wednesday’s decline continues, it will be the eighth consecutive day of decline for electric car maker Elon Musk.

In pre-trading on Wall Street, Tesla shares fluctuated. Earlier on Wednesday, the stock had fallen, but around 12:00 it was up about 2.4 percent.

On Tuesday, Tesla’s share fell 11.4 percent, after several media outlets reported an extended period of production cuts at the factory in Shanghai. The company’s market value fell by $46 billion on Tuesday.

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Historical decline

The electric vehicle maker is just days away from what appears to be the company’s worst month, quarter and year on the stock market.

Tesla shares are up nearly 70 percent since the new year. For the quarter, the stock is down about 59 percent before the last three trading days, while the stock is down about 44 percent so far in December.

Since its IPO in 2010, Tesla’s share has only fallen a year earlier, in 2016, when the drop was 11 percent.

The electric car maker was valued at about $1.112 billion at the end of 2021. After Tuesday’s trading, the market capitalization was $341.8 billion.

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This means that more than $770 billion in paper value has evaporated from Tesla so far this year.

Musk descends from the throne

Overall, 2022 has been a tough year for stock markets, with concerns such as sharp price growth and interest rate hikes. This has particularly affected technology stocks such as Tesla.

At the same time, the electric car maker faced, among other things, challenges at its Shanghai plant, as 2022 was marked by strict lockdowns and restrictions against Corona.

In addition, Elon Musk has been accused of spending too much time on Twitter and too little on Tesla. Musk bought Twitter for $44 billion earlier this year, and took over as CEO of that company, too.

Elon Musk is the CEO of Tesla and the company’s largest shareholder. A large portion of his wealth comes in the form of Tesla shares.

Tesla’s collapse contributed significantly to Musk’s fortune dropping by more than half this year. And on Tuesday alone, it was cut by $8.8 billion, he said bloomberg. This corresponds to NOK 86.6 billion at today’s exchange rate.

His fortune is now about $130 billion, according to the news agency. This corresponds to about NOK 1282 billion.

Musk was also dethroned as the richest man in the world. France’s Bernard Arnault took first place on the Bloomberg Billionaires Index earlier this year.