Arab Press

بالشعب و للشعب
Thursday, Mar 28, 2024

Elon Musk emails staff as Tesla stocks reach two-year low

Elon Musk emails staff as Tesla stocks reach two-year low

Supply chain difficulties at Tesla's Shanghai factory and waning confidence in Elon Musk have led to a tough year for stock in the electric car maker.
Tesla stocks have slid to their lowest value in more than two years as the electric car maker plans to reduce its production cycle and investors worry how much time Elon Musk is dedicating to managing Twitter.

Musk emailed Tesla staff telling them not to be "bothered by stock market craziness" and that Tesla will be the most valuable company on Earth in the long term.

"Please go all out for the next few days and volunteer to help deliver if at all possible. It will make a real difference!" he said in the email.

"Btw, don't be too bothered by stock market craziness. As we demonstrate continued excellent performance, the market will recognise that," he said.

"Long-term, I believe very much that Tesla will be the most valuable company on Earth!"

The market value of the car company was wiped out to the tune of $720bn (£599bn) - on Wednesday afternoon Tesla stock could be bought for $108.71 (£90.45) a share, a low not seen since August 2020 and down from a high of $407.36 (£338.93) a share in November 2021.

Over the course of the year the price of a share has declined 70%, setting it on course to be one of the five companies with the biggest losses in the S&P 500 index of 500 large US-listed companies.

While the value of US stocks dropped over 2022, the benchmark loss was 20%, which Tesla's share losses far outpaced.

Musk took the reins of the social media company in October this year after he halted his legal battle over the alleged number of bot accounts on the site, and completed the deal for roughly $44bn (£36.6bn). His tenure has seen thousands of job cuts and an overhaul of functions on the site.

Investors are concerned that the purchase has taken up too much of the world's former richest man's attention as he stepped into the role of Twitter chief executive.

Tesla's fortunes have been mixed as it has planned to slow down output at its Shanghai factory but continued to grow profit, booking $3.3bn (£2.74bn) of profit in its latest earnings report for the third quarter of 2022.

The plant is to enter an extended lunar new year shutdown, Reuters reported, extending the one experienced this month.

It's not the first time output will be slow as the maker missed its output targets for the third quarter of this year, despite having built a record number of cars.

Given the surge in 1COVID1-19 cases across China, where some Tesla factories are based, it's expected production will take time to ramp up.

The company has also predicted, in its latest earnings report, that battery supply chain constraints will be the main factor stopping growth in the electric vehicle market in the medium and long term.

Aside from the slower production, investors are equally concerned about weakened demand and heightened competition in the electric vehicle market as traditional carmakers switch to electric production.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×