Tesla shares closed lower for the fifth consecutive session after being subjected to selling that erased more than $ 277 billion from the company’s market value over the past month.
Tesla’s stock is down by a third from its highest level in January, making it the third time in nearly a year that the electric carmaker’s shares have substantially corrected their value.
As investors worried about rising interest rates and dumping high-value stocks in recent weeks, Tesla’s market value fell by about $ 300 billion from January 26 to $ 540 billion, Lagging behind Facebook, which you overrun in December.
Shares of technology companies, which have boosted the market’s recovery from the lowest levels of the epidemic in March of last year, have fallen since February 12, due to high revenues and investors diverting money to sectors preparing to benefit from a recovery in the global economy, supported by the acceleration of the launch of Corona vaccines.
However, Tesla’s decline during that period was much deeper than other Wall Street heavyweights.
The Nasdaq Technology Index has fallen by more than 10.5 percent over the past three weeks, and Tesla shares are down 6.5 percent, while their Nio and Li Auto peers closed lower by 7.6 percent and 5.0 percent, respectively.
The wider auto industry has come under pressure from a global shortage of semiconductor chips, which has caused major delays in manufacturing activities and forced many companies to scale back production.
In late February, Tesla CEO Elon Musk said: The company’s plant in Fremont, California, was closed for two days due to a shortage of parts.
The reason for the increase in the company’s market value in recent months is due to expectations that it will expand car production quickly and profitably.
The latest drop came after a tweet from the CEO that an update on the planned Cybertruck truck will likely be offered in the second quarter, after the company unveiled the Cybertruck in 2019.
As the company’s stock has steadily declined since it announced on February 8 that it had bought $ 1.5 billion worth of Bitcoin, its stock fell, while the price of Bitcoin rose by more than 10 percent.
Elon Musk’s net worth decreased by $ 27 billion last week, while his fortune eroded by more than $ 60 billion in the past two months as the electric carmaker’s market value decreased.