Tesla’s shares lost 15.4 % of their value on Monday by closing at $ 222.15 each, given the doubts about the company’s performance in the first quarter of the year.
Tesla’s shares bounce 8% This Wednesday, March 12 after having suffered on Monday its greatest fall in five years. The papers had collapsed 15.4% of their value by closing at US $222.15, given the doubts about the company’s performance in the first quarter of the year and the involvement of their CEO, Elon Muskin the US government.
That day Elon Musk’s company had its worst day of price on Wall Street since September 2020. Tesla’s shares were at the same level as in 2020 and reached up to -40% year -on -year, while Tesla market capitalization lost 45% year -on -year.
Why does Tesla fall
Since the beginning of the year, when Musk became an advisor to the US president, Donald Trump, and assumed the direction of the so -called government efficiency department (Doge), in charge of making mass cuts to public spending, Tesla’s shares sank 41.4 %.
Tesla also suffers image problems poR The growing political prominence of Musk both in Trump’s administration as among several extreme right parties around the world.
Faced with Tesla establishments in several points in North America and Europe, they were carried out protest acts.
And in countries like CanadaBicot campaigns were carried out to the company for Musk’s statements in favor of the country’s American annexation. While, a parliamentary request to withdraw Canadian citizenship already accumulates more than 360,000 signatures.
The result of all these factors is that, analysts such as those of Banco UBS cut the price of Tesla’s shares when considering that they are overvalued.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
