Shares of Tesla, one of the leaders in electric vehicle production, lost a fifth of their value in just two weeks. This led to an astronomical $145 billion reduction in the company’s capital.
The reason for this sharp decline was growing concerns among investors and analysts that demand for electric vehicles was decreasing.
Among those voicing concerns were not only analysts and manufacturers, but also major players such as battery maker Panasonic and chip maker ON.
Tesla shares have lost nearly 20% since October 18, while the S&P 500 has lost only 3.6% and the Nasdaq 100 has lost 4%. This suggests that the decline in Tesla stock prices is occurring much faster than the decline in demand for its products.
All these factors make Tesla investors seriously uneasy and cause them to reconsider their investment strategies.
Once a symbol of innovation and a promising future, the company now finds itself threatened by changes in the market and doubts about its popularity.
Source: Ferra
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