Amid a day of uneven market performance, Tesla’s share price plunged to a new downtrend on Tuesday, finishing at roughly $138, down 8% on the day. Elon Musk, the CEO, first sought to place some responsibility for the price drop on the economy.
For the first time, the profitability of Tesla without a CEO is reflected in the stock price, as noted by longtime Tesla optimist Ross Gerber in a statement. Well done, Tesla! BOD: Restructuring is in order. $tsla.” Gerber has started a grassroots movement to be elected to the Tesla board of directors by the company’s other shareholders.
According To Elon Musk
Musk replies, “As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop.”
In simple terms:
As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are *not* guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop.
— Elon Musk (@elonmusk) December 20, 2022
Since Musk revealed his intention to acquire Twitter in April 2022, Tesla’s stock price has fallen more than that of other significant manufacturers. Since then, Tesla stock has dropped by 59%, compared to 26% for Ford and 12% for GM. Down 14%, the S&P 500. Gerber observes that several inteTeslaions surround the head of Tesla: Musk is the chief executive officer (CEO) of a significant military company, SpaceX, and the new proprietor and Chief operating officer of Twitter, the social media company he purchased in a takeover bid in late October.
To fund the Twitter acquisition, Musk liquidated his billions of dollars in Tesla shares, along with a $3.6 billion transaction earlier this month. He lied to his Twitter workers, saying he traded Tesla stock to “rescue” the firm before laying off half of the workforce and implementing a slew of controversial policies and delivery schedules (many of which he eventually rolled back).