In a year when stocks have declined, Tesla’s share price decline of 70% stands out due to the amount of money lost and Elon Musk’s unconventional behaviour as the company’s CEO.

The market value of Tesla was destroyed to the tune of $680 billion. Additionally, Musk, who was once hailed as a genius who transformed the auto industry, now appears distracted by his purchase of Twitter and is using the social media platform to express his frustrations. This week, he insulted one of his detractors by calling him “tiny testicles.”

Both analysts and investors were in awe of the spectacle. What will happen to the stock, the business, and Musk in 2023 is another common question. The board of directors for Tesla and Musk will have a big say in the solution.

Will he turn back to Tesla and its numerous problems? Or will he continue to be present on Twitter? Despite promising not to, will Musk sell more Tesla shares to keep Twitter running after spending $44 billion to purchase that company? Will Tesla’s first brand-new passenger car in three years, the Cybertruck, eventually be for sale? The most crucial question is whether Tesla’s board will take any action to restrain Musk.

These uncertainties have compelled investors to fundamentally reevaluate Tesla’s prospects in a faltering economy. It continues to be the most valuable automaker and the only significant automaker that is viewed as a growth stock. Investors, however, are no longer persuaded that Tesla can rule the auto sector in the same way that Apple rules the smartphone market or that Amazon rules online retail.

Analysts claim that it is now obvious that Tesla’s $1 trillion stock market valuation at the beginning of the year was exaggerated. Investors who bought shares in the company in 2017 when it was worth $40 billion are likely to blame for some of the spectacular increase in Tesla’s share price in 2020 and 2021. They were probably hoping that the company would make them as wealthy as it had other investors (and considered by some sceptics at the time to be wildly expensive).

By Bizemag Media

Bizemag Media is a reputed name and fast growing MarTech Broadcast Media Firm with success stories in USA, Canada, Europe, Africa & India

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