Elon Musk’s Tesla faces a staggering 29% stock decline within a mere 10 weeks, pushing its market value from nearly $800 billion to slightly above $550 billion. A colossal $234 billion slump, surpassing the individual net worths of corporate giants like McDonald’s, Disney, and Cisco.
Market Titans Overshadowed: Netflix, Coca-Cola, and More Left in the Dust
The fallout extends to eclipsing the market caps of entertainment giant Netflix ($259 billion) and beverage behemoth Coca-Cola ($257 billion). It even dwarfs the values of American Express ($158 billion) and Nike ($148 billion), amplifying the financial upheaval within Musk’s empire. Starbucks finds itself doubled, and Chipotle, FedEx, and Palantir left trailing in the rearview with Tesla’s colossal drop.
Musk’s Wealth Whirlwind: A $40 Billion Setback in 2024
The plunge doesn’t just affect Tesla. Elon Musk’s personal wealth shrinks by nearly $40 billion this year alone, dipping below $190 billion. This pivotal shift topples Musk from Bloomberg’s billionaire hierarchy, relinquishing the top spots to Bernard Arnault and Jeff Bezos.
Riding the Volatility: Tesla’s Peaks and Valleys Over Two Years
Since the onset of 2020, Tesla shares soared nearly fivefold. However, they now face a daunting 60% decline from the peak in November 2021, when the automaker basked in a $1.2 trillion valuation.
Troubled Skies: Declining Demand and China’s Competition Take Toll
Tesla’s nosedive stems from ominous signs of waning electric car demand, exacerbated by Hertz’s decision to sell off 20,000 electric cars in the U.S. The car rental giant, wary of higher repair costs and tepid demand, pivots away from EVs, buying conventional internal combustion engine autos with the proceeds.
Hertz’s Electric Exodus: A Bold Move to Balance Supply and Demand
In a strategic move, Hertz seeks to “balance supply and demand for electric vehicles” by shedding a third of its electric fleet. This divestment aims to slash lower-margin rentals and reduce the financial toll tied to electric vehicles.
Hertz’s Shifting Strategy: A U-turn from Electric Dreams to Pragmatic Realities
Hertz’s retreat from EV enthusiasm is evident, with plans to slow down electrification in 2023. CEO Stephen Scherr cites exorbitant damage repair costs for electric vehicles, which run double that of conventional internal combustion engine counterparts.
Tesla’s Resilience: Still 10 Times the Value of General Motors and Ford
Despite the turmoil, Tesla’s value remains over 10 times that of industry stalwarts General Motors ($46 billion) and Ford ($49 billion), showcasing the resilience that has defined Elon Musk’s electric empire amidst the stormy sea of market fluctuations.
