Auto Express

Tesla stock accelerates due to recall, Covid in China, Twitter chaos

habits in Tesla stocks are accelerating on recovery and showing signs of ChinaCovid Zero’s return to the curbs adds to investors’ concerns, with the CEO Elon Musk focused on turning Twitter Inc.

Shares of the electric-car maker fell as much as 6.5% to $168.52 in New York on Monday, with a closing pace at its lowest since November 2020. Home anxiety Trading was even higher after a city near Beijing returned to lockdown, putting both production and sales at risk. Tesla also initiated the recall of more than 300,000 vehicles due to taillight fault.

Tesla shares have lost nearly half their value in less than two months as supply chains falter, raw material costs soar and potential buyers feel the pressure of persistent inflation and interest rates. get a raise.

On top of that, Musk is preoccupied with his newly acquired social media platform, leading some investors to worry that Tesla’s strategy could go awry.

Cowen analyst Jeffrey Osborne wrote in a note on Friday: “Weaker macro data in China is leading to concerns about Tesla, which slashed prices once to stimulate demand and have production. large export volume in the first half of the fourth quarter.

The analyst added that hedge funds appear to be turning negative on equities due to the risk of “losing focus” on Tesla since Musk’s acquisition of Twitter.

The company’s recent drop in shares marks a major retracement of some of the milestones achieved during its massive rally in 2020 and 2021.

Tesla has been displaced as the fifth most valuable company on the S&P 500 Index by Berkshire Hathaway Inc. of the old economy earlier this month.

The car company lost its trillion-dollar valuation status at the end of April, it only needed their shares to drop another 6.5% from current levels for the valuation to fall below $500 billion.



Source by [author_name]

news7h

News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button