November 4, 7:54 am
So far, 2023 has been a real rollercoaster for the world's most valuable car maker, Tesla, with the company losing and adding hundreds of billions of dollars in stock value month over month. The latest slump, which happened last month, wiped roughly $250bn off Tesla's market cap. But despite that loss, Tesla's stock value is still high above where it was eleven months ago.
According to data presented by AltIndex.com, Tesla's market cap nearly doubled year-to-date and hit $693.9bn last week, despite the latest slump.
Last month, Tesla stocks tanked for the third consecutive time after the electric car maker reported quarterly numbers. After the disappointing third-quarter results, Tesla shares dropped by 9.3%, closing at $220.11 on October 20, causing the company to lose more than $136bn in stock value in just three days and pushing the total month-over-month loss to a massive $250bn.
What's even more shocking is the company suffered practically the same month-over-month stock value drop after its Q2 earnings. On July 19, when the company reported its second-quarter results, Tesla's market cap amounted to $931.6bn, according to Macro Trends and Companies Market Cap data. A day after the earnings call, the stock value dropped by more than $97bn. Over the next three weeks, the total loss climbed to $247.6bn.
Statistics show the electric car maker suffered the smallest market cap drop after its Q1 earnings, with roughly $97bn wiped off its stock value in a week after reporting financial results.
However, despite these massive losses caused by disappointing financial results, Tesla still managed to double its market cap. In January, the company's market cap stood at $342bn. Over the next four months, this figure jumped to roughly $528bn. After reaching this year's high of $931bn in July, Tesla's stock value slumped to $684bn a month later, then jumped again to $876 in September. Although this figure has dropped by 20% since then and hit nearly $694bn last week, this still represents a 102% increase year-to-date.
Tesla was always valued as a high-growth stock, with much of its valuation based on its future potential. But as the economic outlook darkened throughout the past two years, with inflation and high interest rates cutting down consumer spending, the company's potential for future growth also declined.
Although Tesla's stock value is still deep below its all-time peak of $1.2trn in January 2021, the difference between its stock value and the valuations of other leading car producers is even now impressive. With a market cap of roughly $694bn as of last week, Tesla is worth more than Toyota, BYD, Porsche, Mercedes-Benz, BMW, Stellantis and Volkswagen combined.
Statistics show its stock value is 2.5 times higher than that of Toyota, the world's second most valuable car producer, and seven times that of the Chinese BYD.
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The information provided by AltIndex is solely for informational purposes and not a substitute for professional financial advice. Investing in financial markets carries inherent risks, and past performance doesn't guarantee future results. It's crucial to do your research, consult with financial experts, and align your financial objectives and risk tolerance before investing. AltIndex creators and operators are not liable for any financial losses incurred from using this information. Users should exercise caution, seek professional advice, and be prepared for the risks involved in trading and investing in financial assets, only investing what they can afford to lose. The information in this application, derived from publicly available data, is believed to be reliable but may not always be accurate or current. Users should verify information independently and not solely rely on this application for financial decisions. By using AltIndex, you acknowledge that it doesn't offer financial advice and agree to consult a qualified financial advisor before making investment decisions.
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