Tesla drop wipes out mammoth $100 billion of market value in one day alone
Tesla shares dropped by 12 per cent in a single day on Thursday, sending ripples across the stock market in New York and wiping out $109 billion off its valuation. The sharp drop in shares came on the back of Tesla announcing its fourth-quarter earnings and near future outlook which has received a lackluster response from investors.
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Tesla CEO Elon Musk a day earlier had underlined the focus on a humanoid robot called Optimus while confirming that there would be no new electric vehicle product from Tesla this year. During the fourth-quarter earnings' call, Musk is learnt to have highlighted how Optimus would be deployed in Tesla facilities and how it could potentially solve the problem of labour shortage in the United States. He would also confirm that the much-awaited but much-delayed Cybertruck would also not hit production lines in 2022.
The announcement that the Cybertruck is once again delayed and, in fact, no new EV models for the current year may have dulled spirits. “Tesla is clearly running out of momentum, and the lack of a launch of a low-budget car in the mid-$20,000 range really dampens the growth outlook as the competition tries to catch up," Edward Moya, Senior Market Analyst at Oanda Corp. was quoted as saying by Bloomberg.
Musk had previously confirmed plans of a new EV model which would be more affordable than Model 3. This budget Tesla EV is likely to further help the company rake up the sales volumes and could potentially help it establish a foothold in emerging markets where it currently has no presence at all. But reports suggest that Tesla isn't working on this new model at present at all and instead, the focus is on developing artificial intelligence.
While the current list of Tesla products are mostly faring well, lack of new products could indeed dampen the mood in the market.