The Elon Musk Blues: Tesla Shares Have Fallen 49% Since November

Elon Musk
FREDERIC J. BROWN/AFP via Getty Images

Shares of Elon Musk’s Tesla have hit an 11-month low, dropping 49 percent since November, with reports that many investors are becoming concerned with the company and its flamboyant CEO.

Forbes reports that Tesla stock has seen a major downturn recently, hitting an 11-month low as many investors worry about the company and its CEO Elon Musk’s ongoing battle to acquire Twitter.

Elon Musk shades his eyes in front of a Tesla

Elon Musk shades his eyes in front of a Tesla ( Maja Hitij /Getty)

On Tuesday, Tesla stock fell by seven percent to $628, pushing the stock down almost 49 percent from its all-time high in November and wiping over $30 billion from the company’s market capitalization. The company’s market cap has fallen to $650 billion from a high of over $1.2 trillion.

Daiwa analyst Jairam Nathan lowered his price target for Tesla shares to $800 from $1,150 on Tuesday, telling clients that ongoing coronavirus lockdowns in Shanghai where Tesla’s Gigafactory is located as well as supply issues affecting the company’s Austin and Berlin plans will have a larger effect on earnings than previously predicted.

Nathan further expects that Tesla’s deliveries will be pushed down this year to around 180,000 vehicles, meaning that the company will deliver 1.2 million vehicles as opposed to the predicted 1.4 million.

Wedbush analyst Daniel Ives recently warned Twitter’s shareholder meeting this week will “surely kick off some more fireworks” between Musk and the social media firm’s board. This is likely to add to the “major overhang” as many Tesla investors worry that the takeover of Twitter could divert Musk’s attention away from the electric car maker. Ives stated: “Tesla investor patience is wearing very thin.”

“This [takeover] circus show has been a major overhang on Tesla’s stock and has been a black eye for Musk so far,” Ives said. He added that “major market pressure for tech stocks” has continued to add to the uncertainty.

Read more at Forbes here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address lucasnolan@protonmail.com

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