Elon Musk’s Tesla has witnessed a startling 29% decline in shares within a mere 10 weeks, marking the lowest point since May and triggering a seismic shift in market dynamics.
Market Value Tumbles: More Than McDonald’s, Disney, or Nike Combined
Tesla’s market value plummeted from almost $800 billion to just above $550 billion, shedding a staggering $234 billion. Notably, this surpasses the entire market cap of major players like McDonald’s ($212 billion), Disney ($202 billion), and Cisco ($199 billion), leaving industry pundits and investors on edge.
Beyond the Dow: Netflix, Coca-Cola, American Express, and Nike Overwhelmed
The ripple effect extends to behemoths like Netflix ($259 billion), Coca-Cola ($257 billion), American Express ($158 billion), and Nike ($148 billion), with Tesla’s descent dwarfing even double the value of Starbucks ($104 billion) and tripling that of Chipotle ($71 billion), FedEx ($62 billion), and Palantir ($58 billion).
Musk’s Wealth Erodes: A $40 Billion Personal Setback
The precipitous fall isn’t just hitting Tesla; Elon Musk’s personal wealth shrinks by nearly $40 billion in 2024, dragging him from the pinnacle of Bloomberg’s billionaire ranking to a humbling third place, relinquishing the throne to Bernard Arnault and Jeff Bezos.
From Glory to Gloom: Tesla Shares Spiral Down 60% from Peak
Despite a fivefold rise since 2020, Tesla shares have plummeted by 60% from their November 2021 zenith, when the automaker boasted a valuation of $1.2 trillion. Reasons behind this stark decline include signals of waning electric car demand and Tesla’s necessity to slash prices amid fierce competition in China, particularly from companies like BYD.
Hertz’s Electric Exodus: 20,000 Vehicles Sold Amid Concerns
Adding fuel to the fire, rental giant Hertz unveils plans to sell off 20,000 electric cars, a third of its global fleet, citing concerns over demand and escalating repair costs. This move, reported by Engadget, is expected to realign the supply and demand dynamics for electric vehicles and mitigate losses associated with their maintenance.
Hertz’s Electric Ambivalence Revealed: A Shift from Tesla to Internal Combustion Engines
Hints of Hertz’s reluctance to heavily invest in electric vehicles surfaced in recent years. Despite purchasing 100,000 vehicles from Tesla in 2021 and outlining plans for 65,000 electric cars from Polestar, the company backtracked in October 2023, citing exorbitant damage repair costs for electric vehicles. CEO Stephen Scherr emphasized that electric cars incurred “about twice as much” in damage repairs compared to conventional internal combustion engine vehicles.
Electric Car Yard Sale: Hertz Unloads Tesla Model 3 and Model Y Vehicles
As Reuters reports, Hertz is currently offloading more than 700 electric cars through its used car platform, predominantly comprising Tesla Model 3 and Model Y vehicles. The move signifies a strategic pivot away from electric vehicles, underscoring the challenges faced by the industry and the evolving landscape of automotive preferences.
