Tesla’s stock price plunged nearly 20% in the past week. It is the worst decline since the beginning of the COVID-19 Pandemic in 2020. The weakness in Tesla’s stock price is attributed to a combination of Tesla’s sluggish main business, including India’s performance, which falls short of market consensus, and increased uncertainty due to CEO Elon Musk’s acquisition of Twitter.
Tesla’s stock price risks due to Musk’s acquisition of Twitter
According to the U.S. economic media CNBC on the 8th (local time), Tesla’s stock, which was $265.25 on the 30th of last month, closed at $223.07 a week later. Tesla’s stock price has fallen nearly 16% in a week, the biggest decline since March 2020. March 2020 is when the shutdown begins due to the initial situation of the COVID-19 pen pile.
Local experts and media in the U.S. analyze that Tesla’s stock decline is complex.
The biggest reason for lowering Tesla’s stock in the past week is anxiety over Musk’s acquisition of Twitter.
The Delaware court ordered Elon Musk to complete the acquisition of Twitter by the 28th of this month and temporarily suspended the lawsuit between the two sides. Twitter pressed Musk to fulfill a $44 billion acquisition deal by the 28th. As a result, Twitter shares rose and Tesla shares fell.
Tesla’s sluggish vehicle delivery performance is another major reason why it has dragged down its stock over the past week. The market expects Tesla to deliver a total of 364,660 electric vehicles by the end of September. However, Tesla said it started production at its new plants in Brandenburg, Germany and Austin, Texas, but delivered only 343,000 units.
Experts say whether Tesla is facing a drop in demand in China, which is currently facing the fiercest competition with China BYD, a lithium-ion battery and electric vehicle manufacturer backed by Warren Buffett, will be an important factor that can determine Tesla’s stock price in the future.