Shares of Tesla Inc. fell about 50% from their all-time high in November last year on the back of continued inflation and an active sale of securities in the stock market.
The electric car maker’s shares closed down 7.6% on Friday at $204.99, bringing the market capitalization to $642 billion. The all-time high was recorded on November 4, when the stock was worth $409.97.
The decline in the company’s shares comes against the backdrop of a massive collapse in the markets, as the economic downturn scares investors who are already bracing for the impact of rising inflation and the imposition of higher interest rates by the regulator.
Tesla has a slew of problems: Car deliveries in the third quarter were hit by logistics issues, and some analysts warn that rising prices for the company’s cars could impact demand at some point. On top of that, Tesla’s Shanghai plant has experienced disruptions due to Covid-19 and lockdowns. The company also faced supply shortages and rising raw material prices, like almost every other automaker in the world.
The share price was also affected by CEO Elon Musk’s attempt to first buy Twitter and then back out of the deal, only to eventually reiterate its intention to buy the company.