On January 3, 2022, Tesla shares traded for $399.93 and are now worth only $125.35. December 22, a decrease of 68.66%. The manufacturer suffered from the impact of the crisis in the supply of raw materials, but also became a hostage victim of the Twitter takeover and Elon Musk’s political moves. Has Tesla lost its former reputation?
What is happening to Tesla? Valued at more than $1.2 trillion in January 2022, the No. 1 electric car had everything to keep rising. Even better, its end results are excellent. Tesla sells more and more cars, makes more and more money, and never stops gaining market share. Even with inflation and the prospect of a new economic crisis raising concerns, Tesla had everything on paper to make 2022 a success.
However, with a week to go before accounts close, Tesla’s performance is not going well. On December 23, it was traded at the rate of $125.35, on January 3 it was $399.93 (-68.66%) and exactly one year ago it was $355.67 (-64.76%). How to explain such a critical enemy? Elon Musk regularly blames the economic crisis and the American financial authorities, but the reality is probably different.
Elon Musk’s behavior is disturbing
If it would be wrong to attribute the fall of Tesla shares to the behavior of Elon Musk (in the midst of a war on the doorstep of Europe and an unprecedented crisis in the supply of raw materials), the influence cannot be denied. from the billionaire’s business tweets.
On December 22, Elon Musk was precisely present To the Twitter space With Tesla investors, he says it’s an “easy” task, admitting it’s affecting the stock price, promising to take interest in Tesla after fixing Twitter. However, Elon Musk has not agreed to back down on some of his positions, especially against the LGBT community, which he often mocks. The exchange has sparked a new controversy that could weigh on Tesla shares in the coming hours.
Why do we blame Elon Musk? First, his apparent separation from Tesla.
The businessman has been less interested in Tesla since April, when he bought a stake in Twitter before starting the procedure to take over the social network. To accomplish this acquisition, he sold several million shares of the automaker’s stock… even though he promised he wouldn’t. Add to this his lawsuit against Twitter, his declarations of war against the press, his vague political statements, his connections with controversial figures, his extreme reactions (for example, when censoring journalists)… Elon Musk is in the process of destroying his public image. , divides people into two camps: those who love it and those who hate it.
Every massive drop in Tesla stock is tied to a Twitter story. One would think that Elon Musk would be quick to come back to save his beloved business, but he always ignored the problem as a result. Even today, he has no intention of giving up Twitter to pursue Tesla and SpaceX. While he promised a new CEO at Twitter, he remains confident he can do it all (but intends to keep core functions).
In addition to the Twitter news, other things are keeping Tesla on notice. 100% autonomous driving continues to be changed, Cybertruck features are still unknown, prices are constantly changing, Tesla still does not have a communications division… Journalist Fred Lambert, who has been covering Tesla for several years for Electrek, is the first person to worry about this situation. . Elon Musk’s admirers consider him so innocent that they encourage him never to question himself: “You can love Tesla and Elon and love their impact on the world without being in a cult. »
Tesla’s fall is bigger than Bitcoin’s
As mentioned Accuracy on TwitterThe 68.66% decline in Tesla stock as of December 23, 2022 makes it a bigger economic disaster than bitcoin, but is considered by many to be the worst of the year.
The cryptocurrency, which was worth $41,976.51 on January 1, is currently worth $15,876. That 62.16% drop is big, but less than Tesla stock.
Can Tesla pull itself together? It is obvious that. But to achieve this, Elon Musk and his leadership must be willing to change a lot. Does Tesla, in particular, need a new CEO? 2022 proved that it is not enough to sell a car to a car manufacturer: you also need to know how to take care of your image.