It has been a brutal year for Tesla stock. Shares of the electric-vehicle maker have lost a massive 68 percent in 2022. It makes Tesla the worst performing company among any major S&P Company.
Tesla stock crashed this week to its lowest level since August 2020, falling more than 20 percent in the last seven days alone.
The stock collapse comes amid fears about production delays in China, as well as concerns that its CEO Elon Musk is distracted by his newest toy, Twitter.
Musk purchased Twitter a few short weeks ago, and since the social media platform has been embroiled in chaos and controversy. Investors betting against Tesla are getting the big bonanza they have been waiting for. Tesla is set to record its worst annual performance on record.
Tesla’s losses have left the electric car maker’s market cap below $350 billion, having been valued above $1.23 trillion just over one year ago. That makes the loss more than the combined value of all other car makers globally.
Tesla has therefore been pushed out of the top 10 most valuable companies.
Turmoil at Tesla and Twitter have stripped Musk of the title of the richest person in the world, especially due to the amount of equity he retains in the company.
The losses have led investors and analysts to speculate that Musk will be forced into a margin call.
The most recent losses follow the news that the company’s factory in Shanghai will be forced to reduce production in 2023. It already slowed its output in 2022 because of Covid pandemic restrictions and lockdowns in China.
There’s another bit of bad news for the car manufacturer. A new law in California will ban Tesla from advertising its vehicles as “fully self-driving.”
Musk sold billions of dollars worth of Tesla shares this year to finance his takeover of Twitter. He claimed earlier this month that the losses could be attributed to external factors.