Tesla suffered a 65% valuation loss in 2022
Tesla, once seen as the “prized jewel” of electric vehicles, is now suffering from a plunge of 65% in stock value. Weakening demand and logistical problems seem to be the root cause of the growing problem. However, despite these issues, Tesla remains the world's most valuable automaker. Tesla missed the mark on market expectations in the fourth quarter, sending stocks tumbling and on par with rival automaker Ford Motor Co. Once valued at more than $1 trillion, the $60 billion tumble brought the company’s stock to the bottom of the benchmark S&P 500 index early this week. Company stock fell is $105 and Wall Street is speculating that it will continue to drop.
The stock value reflects the perceived value of the company and when the stock value is high, it means that investors believe that the company is performing well and is likely to continue to do so in the future. This can attract more investors and help to raise capital for the company. Therefore, esla's stock value is closely watched by the media and the general public, and it can be seen as a indicator of the overall health of the company and the state of the economy. As such, it can have a psychological impact on consumer confidence and investor sentiment.
A few years back, Hertz took a bold step by purchasing 30,000 Teslas, aiming to electrify 20% of its rental fleet.