the stock market value of the builder falls by 250 billion dollars

Tesla records yet another drop in its share price. After a first fall in mid-February, the manufacturer’s shares fell 7.5% on Friday, March 5, 2021 to fall below the $ 600 mark. As a result, Tesla’s value took a big hit, dropping from $ 834 billion to $ 567 billion, a record loss of $ 267 billion.

We told you about it a few weeks ago. After weeks of euphoria, Tesla’s stock market recorded its biggest drop since September 2020. Several factors are to blame, starting with the changing price of Bitcoin. As a reminder, the manufacturer has invested $ 1.5 billion in BTC. In fact, if the queen of cryptocurrencies is doing badly, Tesla is bound to feel the effects.

Now and according to our colleagues in the Guardian, shares continued to fall on Friday March 5, 2021, with a drop of 7.5%. The share was valued at $ 575. In January 2021, the brand was at the top, with a share estimated at $ 883. In total, Tesla therefore records a 35% drop the amount of its share.

Tesla’s value loses $ 267 billion

As you can imagine, this gradual fall in the share price has drastically reduced Tesla’s stock market value, from $ 834 billion in January 2021 to $ 567 billion at the start of March. That is a loss of $ 267 billion. Of course, Elon Musk has also lost some feathers in the battle, given who owns around 20% of Tesla’s shares.

CEO lost $ 7.5 billion, and his fortune is now “only” 162 billion dollars. Moreover, this situation has earned him no longer to be the richest man in the world, the boss of Amazon having taken his place. According to the Guardian, major UK backers of Tesla have decided to reduce their involvement in the company’s capital.

This is the case of the Scottish Mortgage Investment Trust (SMT), which has chosen to reduce its weighting in Tesla in Januaryfrom 8.9% to 5.1% of the fund. According to several analysts, Tesla shares fell as investors fear the automaker is vastly overvalued.

Source: The Guardian