Is the wild ride over? Tesla loses US$100 billion of value in a day after 12 per cent plunge in its stock
- Tesla’s shares plunged by 12 per cent to US$829 overnight in New York, the lowest since October 14
- The electric car maker’s decline was the second biggest on the S&P 500 Index
Tesla shares wiped out about US$109 billion off its valuation during a single day after the electric vehicle maker’s fourth-quarter earnings and outlook failed to impress investors.
Shares of the Austin, Texas-based electric vehicle maker plunged nearly 12 per cent on Thursday after an earnings call the previous day that was long on a humanoid robot called Optimus and short on new vehicles.
The stock closed at US$829 in New York, the lowest since October 14. The decline was the second biggest on the S&P 500 Index on Thursday. The last time Tesla erased more than US$100 billion in market value in a single day was November 9.
During Tesla’s fourth-quarter earnings call on Wednesday, Chief Executive Officer Elon Musk said that the company would not bring any new vehicles to market this year. That was a letdown for many who assumed Musk’s promise of an “updated product road map” would include bullish news about the Cybertruck, Semi truck and plans for future, cheaper models.
“Tesla is clearly running out of momentum, and the lack of a launch of a low-budget car in the mid-US$20,000 range really dampens the growth outlook as the competition tries to catch up,” said Edward Moya, senior market analyst at Oanda.
