The company’s shares fell 6.5%, the biggest hurdle for the S&P 500.
After it was disclosed last week that the electric vehicle manufacturer plans to temporarily halt production at its Shanghai facility, a sell-off in Tesla Inc. shares accelerated, briefly pushing the company’s market value below the anticipated $0.5 trillion threshold.
Tesla is not the only company whose value has plummeted this year.
Shares of the market leader in electric vehicles have been falling precipitously over the past few months; they have dropped about 40% since the end of October, versus a 12% increase in the S&P 500 index.
The value of every business in the NYSE FANG+ index has decreased by over a fifth this year, so Tesla is by no means the only one whose value has plunged.
Investors have expressed concern over Musk’s shifting control of the social networking site Twitter and his plans to alter the platform as the company struggles to deal with continuous supply shortages, increased pricing, and manufacturing setbacks.
Tesla lost its fifth spot in the E&P 500 ranking by value to Berkshire Hathaway Inc. as a result of the stock’s decline, which was also reflected in its participation in the club of companies with trillion-dollar valuations.