Weaker deliveries for fourth quarter and another round of price cuts on its vehicles in China intensify fears
The market value of Tesla shares plunged below that of Facebook parent Meta Platforms for the first time in more than a yearMembers of media and guests surround the Tesla Model Y and Model 3 during Thailand Tesla's official launch event in Bangkok, Thailand, December 7 2022. Picture: ATHIT PERAWONGMETHA/REUTERS
The Elon Musk-led EV maker’s shares fell as much as 7.7% to $101.81 in early trading on Friday. The stock later erased the losses to close up 2.5% as the broader market rallied after economic data showed wage gains have slowed down, a development that can help the Federal Reserve fight inflation. Earlier in the session, Tesla’s market capitalisation dipped to $321bn, dropping below Meta’s about $334bn.
Though megacap tech companies, key drivers of the previous Wall Street bull market, struggled last year as they bore the brunt of rising interest rates and lower investor appetite for risky investments, Tesla’s decline still stands out. The company finished 2022 at the bottom of the NYSE Fang+ index, a gauge of 10 technology behemoths, including Meta, Apple, Microsoft and Amazon.com.Tesla’s valuation dropping below Meta’s also highlights the many commonalities between the two stocks.
“Retail investors have bought more Tesla stock over the last six months than they have done overall in the 60 months prior, meaning that this group is definitely feeling the pinch of the recent months’ fall,” Vanda’s Marco Iachini and Giacomo Pierantoni said.
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