Elon Musk’s Tesla has experienced a jaw-dropping 29% drop in stock value within a mere 10 weeks, reaching its lowest point since May.
From Pinnacle to Abyss: Tesla’s $234 Billion Market Cap Slide
This sharp downturn has sliced Tesla’s market value from almost $800 billion to slightly above $550 billion, overshadowing the entire worth of industry giants like McDonald’s, Disney, and Cisco, totaling $234 billion.
Outshining Titans: Tesla’s Fall Comparable to Netflix and Coca-Cola
Notably, this descent rivals the market capitalizations of Netflix ($259 billion) and Coca-Cola ($257 billion), surpassing the valuations of American Express ($158 billion) and Nike ($148 billion). It even doubles Starbucks’ value and triples the sizes of Chipotle, FedEx, and Palantir.
Elon Musk’s Wealth Shrinks: A $40 Billion Blow in 2024
The drastic stock drop has hammered Elon Musk’s personal fortune, shrinking by nearly $40 billion this year, settling below $190 billion. Musk, once atop Bloomberg’s billionaire ranking, now trails behind Bernard Arnault and Jeff Bezos.
Riding the Waves: Tesla Shares Surge Fivefold, Then a 60% Drop
While Tesla’s shares soared almost fivefold since 2020, a sharp 60% descent from their November 2021 peak at $1.2 trillion underscores the volatility in the electric car giant’s trajectory.
Hertz’s Electric Car Exodus: A Significant Blow to Tesla
Simultaneously, rental giant Hertz, citing concerns about demand and high repair costs, plans to shed 20,000 electric cars from its U.S. fleet, approximately a third of its global electric vehicle inventory. Engadget reports that Hertz aims to balance supply and demand for electric vehicles while mitigating loss costs associated with them.
Hertz’s Reluctance to Fully Embrace Electric: A Historic Shift
This move signifies a historic shift, with Hertz’s 2023 decision to slow down electrification plans, citing disproportionately high damage repair costs for electric vehicles compared to traditional ones. In a surprising revelation, Hertz currently sells over 700 electric cars, primarily Tesla Model 3 and Model Y vehicles, via its used car website.
As Tesla faces headwinds, Hertz’s strategic pivot raises questions about the broader electric vehicle landscape and signals a potential turning point in the industry’s dynamics.