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Tesla's market value drops below $1 trillion after Elon Musk's tweets

Tesla's stock closed roughly 2% down at $1,013.39, bringing the company's market capitalization down by around $207 billion since Musk began selling shares last week. 

Tesla market value drops below 1 trillion after Elon Musk tweets gcw
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Washington D.C., First Published Nov 16, 2021, 9:11 AM IST
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Tesla Inc's stock fell further on Monday as investors responded to CEO Elon Musk's recent share transactions totalling $6.9 billion, as well as his recent comments. Tesla's stock closed roughly 2% down at $1,013.39, bringing the company's market capitalization down by around $207 billion since Musk began selling shares last week. The current market dip follows a Sunday Twitter feud between Musk, the world's richest person, and Senator Bernie Sanders, who urged that the affluent pay their "fair share" of taxes.

During the Monday session, Tesla traded as low as $978.60, taking its stock market value below $1 trillion for the second time in four days. Tesla became the first company to reach the $1 trillion milestones late last month. According to Kunal Sawhney, CEO of stock analysis company Kalkine Group, Tesla shares fall following a Twitter poll last week. And Musk's Sunday post mocking a prominent lawmaker may add to the stock's woes in the coming weeks. Elon Musk, he continued, is expected to incur a tax burden of roughly $15 billion by selling shares worth billions of dollars.

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Also Read | Tesla CEO Elon Musk lives up to Twitter promise, sells around 900,000 Tesla shares worth $1.1 billion

Musk sold 6.36 million Tesla shares last week after putting the notion to a vote on Twitter. He would need to sell around 10 million additional shares to meet his vow to divest 10% of his stake in the electric-vehicle company. Tesla's stock has risen more than 140 per cent in the last year, fueled by Wall Street's appetite for electric vehicle companies. The stock has dropped to its lowest level since late October as a result of the latest selloff.

Rivian Automotive gained about 15% on Monday, bringing Amazon.com-backed EV maker's total gain to around 90% since its initial public offering last week. Tesla and Rivian were the most actively traded equities on Fidelity's online brokerage, with more than two purchase orders for every sale request. On Saturday, Musk warned a Twitter user not to "read too much into" PepsiCo CEO Ramon Laguarta's remarks regarding Tesla Semi truck deliveries beginning in the fourth quarter. Tesla has fared better than competitors in the face of the pandemic and the global supply-chain problem, reporting record revenue for the sixth straight quarter.

Also Read | Tesla eclipses $1 trillion market value, sixth company in US history

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