Elon Musk’s Tesla witnessed a 29% freefall in stock value within a mere 10 weeks, marking the lowest point since May and sending shockwaves through the market.
Market Cap Meltdown: Tesla’s $234 Billion Decline
As Tesla’s shares plummeted, the market value cratered from nearly $800 billion to just above $550 billion, erasing a staggering $234 billion. Notably, this colossal loss surpasses the total worth of industry behemoths like McDonald’s, Disney, and Cisco combined.
A Giant’s Fall: Comparisons to Netflix, Coca-Cola, and More
The market recalibration places Tesla’s dip in proximity to heavyweights like Netflix ($259 billion) and Coca-Cola ($257 billion), eclipsing the values of American Express ($158 billion) and Nike ($148 billion). It more than doubles Starbucks ($104 billion) and triples the size of Chipotle ($71 billion), FedEx ($62 billion), and Palantir ($58 billion).
Musk’s Wealth Woes: A $40 Billion Yearly Shrinkage
The stock plunge corresponds with Elon Musk’s personal fortune shrinking by nearly $40 billion this year, dipping below $190 billion. Consequently, Musk relinquishes his top spots on Bloomberg’s billionaire ranking to Bernard Arnault and Jeff Bezos.
A 60% Drop: Tesla’s Rollercoaster Ride
While Tesla shares surged fivefold since 2020, they now face a daunting 60% drop from their November 2021 peak of $1.2 trillion. Reasons for the decline range from signs of dwindling electric car demand to intense competition in China, where Tesla had to slash prices.
Hertz Ditches Electric Dreams: Selling 20,000 EVs
In a telling move, rental giant Hertz is selling 20,000 electric cars from its U.S. fleet, citing concerns about demand and higher repair costs. This represents a third of its global electric vehicle inventory. The move aligns with Hertz’s strategy to balance supply and demand for electric vehicles while reducing costs associated with lower-margin rentals.
Hertz’s Electric U-Turn: A Shift in Strategy
Hertz’s reluctance to heavily invest in electric vehicles became apparent as it slowed down plans to electrify its fleet. CEO Stephen Scherr highlighted the substantial damage repair costs of electric vehicles, which were double that of conventional internal combustion engine vehicles.
The Aftermath: Tesla’s Value Still Towers Over Competitors
Despite Tesla’s recent turbulence, its current value remains over 10 times that of General Motors ($46 billion) or Ford ($49 billion), underscoring the enduring impact of Musk’s electric revolution. Hertz’s move to offload electric vehicles adds another layer to the evolving landscape of the automotive industry.