that’s why Wall Street rejects Musk- Corriere.it
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Tesla’s descent continues in the Wall Street pre-market. The electric car group loses more than 3% (to 105 dollars) after finishing one of the worst days of the year yesterday with a drop of 11%. The electric carmaker is thus starting to end the worst year in its history, with shares down 70% from the November 2021 peak.
The causes
What are the reasons
of this crisis? There is not just one, but a set of factors that have brought the capitalization below 390 billion dollars, when at the beginning of the year it was worth over 1,000 billion. The first to end up in the dock was Elon Musk himself: the reassurances that he had no intention of selling more Tesla shares (after having sold securities for 39 billion dollars) were of little use to support the purchase of Twitter for 44 billion dollars. But he denied he neglected to lead Tesla to focus on Twitter.
In these days, the sell-off was influenced by the news that the company will reduce production in the Shanghai gigafactory, from January, after the closure imposed for the last week of December. Tesla faces a combination of rising Covid-19 infections and falling demand in China, the world’s largest automotive market. In recent weeks, the company has offered incentives to buyers of its cars in the country of the Dragon by cutting the prices of Model 3 and Model Y by 9%.
The faults
Nevertheless
, according to Musk, to blame for the collapse of the Fed’s stock, which raises interest rates and pushes the economy into recession. In any case, 2023 does not promise to be easy to manage: according to press sources, layoffs are expected in the first quarter for the group which would also like to freeze hiring. There is strong competition from other operators in the sector.
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