Tesla, how far does it fall… Falls by 30% over a month and collapses at the $600 mark

Input 2021.03.06 13:52

Tesla’s CEO Elon Musk is performing a’maknae dance’ at the’Model 3’Indian Ceremony held in Shanghai, China last February. /Reuters Yonhap News

The share price of Tesla, an electric car maker in the US, has fallen below the $600 mark in three months.

Tesla closed at $597.95, down 3.78% on the 5th (local time). It also plummeted to 13% during the day. The closing price on this day is the lowest since December 3, last year.

Compared to the peak at the end of January, the market cap evaporated by about 300 trillion won, with a drop of about 30% in 5 weeks. Based on the closing price, the market capitalization of Tesla is 574 billion dollars (648 trillion 46 billion won). When Tesla’s stock price reached its highest point ($883.09) on January 26, the market cap was $837 billion (94.43 trillion won).

Bloomberg reported that “The Tesla crash exceeded that of the general stock market.” On this day, the Nasdaq index, which is centered on technology stocks, fell 1.55%. Bloomberg said, “Elon Musk has accumulated wealth at the fastest pace in history, but the reversal is happening again,” he said.

Tesla’s CEO Elon Musk’s stock valuation decreased by $27 billion (30,483 billion won) this month alone.

Tesla stock price trend in the last six months. /Google Capture

Foreign media cited the burden of the previous surge and the entry of existing automakers into the electric vehicle (EV) market as the cause of the decline in Tesla’s share price.

Bloomberg News announced that traditional industry giants, such as GM, Ford, and Volkswagen, will aggressively jump into the EV market in recent months, and that rising corporate borrowing costs arising from rising U.S. Treasury yields has raised concerns about overvalued companies like Tesla. Analyzed. The US economic media CNBC also said the fear of the US Federal Reserve’s (Fed) inflation warning fueled the sale of overvalued Tesla stocks.

CNBC analyzed that “the Fed Chairman Jerome Powell warned of inflationary pressure, and the market is now concerned that interest rates will rise,” said CNBC. “Tech stocks that are valued for future growth are undergoing extensive adjustments.”

In fact, major investors also started to cash in by reducing the proportion of Tesla holdings. Baron Capital, an asset manager founded by US billionaire Ron Baron, recently revealed that Tesla’s share of its portfolio has become so large that it has sold its stock. Baron Capital has sold 1.8 million Tesla shares since August last year.

Steve Wesley, former Tesla director, said, “Tesla cannot forever be a leader in the electric car market. The competition in the electric car market is overheating, putting a considerable burden on Tesla.”

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