Shares of electric car makers fell 6.8%.
Tesla Inc.’s drop is quickening as a result of the recall, and CEO Elon Musk has been concentrating on reviving Twitter Inc., while China’s return to COVID Zero restrictions adds to a host of investor worries.
In New York, Tesla shares dropped 6.8% to $167.87, their lowest level since November 2020.
Tesla lost almost half of its value.
As the supply chain tightens, material prices increase, and prospective customers feel the weight of persistent inflation and rising interest rates, Tesla Inc. has lost nearly half of its value in less than two months.
The fact that Elon Musk is also preoccupied with his recently acquired social networking site has some investors concerned that Tesla’s strategy may be changing.
Earlier this month, in the tough old economy, Berkshire Hathaway Inc. replaced Tesla as the fifth most valuable firm in the S&P 500 index.
It just takes a vehicle manufacturer’s stock to decline another 5.7% from current levels for the valuation to drop below $500 billion for a firm that lost its $1 trillion valuation at the end of April.