(Bloomberg) – Shares of Tesla Inc. fell about 50% from their all-time high, amid a widespread US stock market sell-off that has hit growth and tech companies especially hard.
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Shares of the electric vehicle maker closed down 7.6% to $204.99 on Friday, bringing its market capitalization to $642 billion. The drop has now halved from the stock’s Nov. 4 closing record high of $409.97.
The plunge comes amid a broader market downturn, as the specter of a recession shakes investors who were already braced for the impact of rising inflation and higher interest rates. Riskier growth stocks with high valuations have suffered as a result of the sell-off.
Tesla’s own list of troubles is long: Q3 vehicle deliveries were hit by logistical troubles, and some analysts warn that the company’s rising car prices could also affect demand at some point in time. On top of that, Tesla’s factory in Shanghai has faced disruption due to the Covid-19 shutdown in the city. The company has also been dealing with supply shortages and rising raw material costs, like most other automakers globally.
CEO Elon Musk’s public attempt to first buy Twitter Inc., then walk out of the deal and buy-back, has also been a drag on the stock, due to concerns that the company’s leadership is over lean in many challenges. Venture.
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