Tesla is one of the world’s largest companies. The company, with famous entrepreneur Elon Musk at the helm, has increased its visibility in recent years and has also significantly increased its market value. However, according to recent developments, things have not been going well for Tesla for the past few days.
The company has faced some negative situations. In addition, market sales have declined, leading to a significant loss in market value. So, what is the source of this decline? Here are the market value and all the details of Tesla…
Why did Tesla’s market value drop?
Tesla’s market value was $643.46 billion on February 28th. However, as of today (March 6th), we see that it has dropped to $566 billion. This represents a loss of $77 billion. The company’s share price fell by more than 7% on Monday and by about 4% on Tuesday, dropping to $180. But why?
There are two main reasons for Tesla’s decline. First, a fire broke out at the company’s large factory in Berlin, Germany, as a result of arson. After this fire, the factory suffered significant damage, rendering production impossible. This incident led to a decrease in confidence in the company.
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The second reason is that Tesla’s sales in China decreased by 19% compared to February of last year. Accordingly, the company made 60,365 sales. The reason for the decline is that during the Chinese New Year, rival companies updated their prices, leaving Tesla behind in this competition. BYD stood out by offering cheaper models.
Whether Tesla’s market value will continue to decline or return to an upward trend remains to be seen in the coming days.
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