Tesla stock collapses… Investors are bored of Elon Musk’s “circus”

Dubai: Khansa Al Zubair
According to “Forbes”, Tesla’s stock fell to its lowest level in 11 months, down 49% (half its value) from its highest level ever, which was in November 2021.. After the company’s value reached more than 1.2 A trillion dollars a little over six months ago has now fallen to 630.8 billion dollars, losing more than half a trillion dollars in market value.
And Tesla’s share, which exceeded $1,243 a day, closed on Tuesday at $628.16.
It appears that the plan of Elon Musk, the CEO of the company, to buy Twitter did not help, and Dan Ives, an analyst at private banking firm Wedbush, comments, “Shareholders are running out of patience with Musk’s frantic moves with the social media giant.” And he believes that “this takeover offer, which was called the circus offer, constituted a great burden on Tesla’s stock, and was a discount on Musk, and the main market pressures for technology stocks exacerbated concerns.”
Musk used to do weird things sometimes, tweeting that cost him millions of dollars, and lately he’s been in the news almost every day, for one thing or another. But now it seems that his unpredictable antics are finally starting to have repercussions.
The sharp decline in Tesla shares contradicted previous expectations that the stock would continue its strong jumps during 2022, and while the world was celebrating the approaching start of the new year 2022, Wedbush Financial Consulting expected that Tesla would occupy a better position in the new year, supported by strong demand. In China, new plants are opening in the United States and Germany, according to a note from Wedbush analyst Daniel Ives at the time.
The memo expected that the shares of the electric car maker would witness a rise of nearly 30% during 2022, which means that the company’s market value would have reached the limits of two trillion dollars, according to expectations.
Tesla’s stock rose about 55% during 2021, which pushed the company’s market value to exceed one trillion dollars, at a time when CEO Elon Musk sold a share of his shares in the company since November, and Musk’s sales of the company’s shares reached 10 %.