Shares of Tesla Inc. they fell on Monday for the fifth straight session, as part of a sale that has removed more than a quarter of a trillion dollars from the company’s market capitalization in just over a month.
Shares of Tesla TSLA,
it has fallen 21% in the last five business days and down 34% in the last month. Since peaking on Jan. 26 with a market capitalization of about $ 850 billion, Tesla has lost about $ 277 billion in valuation.
Tesla has also entered its third bear market, defined as a drop of 20% or more from the recent high last year, after strong sales in September and March 2020. However, the volatile shares of the manufacturer of electric cars have increased by more than 360% over the last twelve months.
Technology stocks in general have been hit hard in recent weeks, with the Nasdaq Composite COMP,
fell 9% last month. In particular, electric vehicle companies have fallen sharply. Among Tesla’s rivals, Nio Inc. NIO,
has fallen 38% in the last month, while Nikola Corp. NKLA,
has fallen 38% and Li Auto Inc. LI,
is 30% off.
One reason is the global shortage of chips that has affected carmakers ’supply lines. In February, Tesla briefly closed its plant in Fremont, California, which CEO Elon Musk blamed for a “shortage of parts.” CNet reported on Monday that customers buying Model 3 and Model Y vehicles face a delivery deadline of months.
Rising interest rates have also had a weight, as high-growth companies like Tesla depend on future cash, which is devalued as rates rise. A Barron’s estimate found that, as a certainly simplified example, every 1% increase in interest rates harms Tesla’s value by about $ 200 billion.
See: Tesla is cratering. This is what affects interest rates
Shares of Tesla closed at about $ 568 per share on Monday, below the average target price of $ 616 from analysts followed by FactSet.
ARK Investment founder Cathie Wood has said her company will soon offer a new price target for Tesla shares, but said Monday is still bullish on the company.
“Our confidence in Tesla has increased for several reasons,” Wood said in an interview with CNBC’s “Closing Bell,” citing Tesla’s market share and progress in autonomous driving.