Tesla suffers worst ever stock fall off since the company went public in 2010
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While Elon Musk has had a tumultuous year, it looks like things are only getting worse.
Business Insider reported that the company is down 62 per cent since its peak in November last year, officially making it the biggest stock fall since Tesla went public over a decade ago.
Until now, the company’s most significant drawdown was in February this year, plummeting by 60.6 per cent.
Investors perhaps believe the SpaceX founder’s priorities are somewhat compromised as stocks have fallen by 28 per cent since Musk took over Twitter.
However, aside from his company suffering due to Musk setting his sights on the social media giant, Tesla has faced major problems internally.
Sydney Morning Herald reported that sales have been dwindling in the past couple of years due to China's severe lockdown restrictions, the company’s biggest market outside of the US.
Last month, Musk also issued a recall for over 300,000 vehicles in the US due to a taillight problem.
It came after the company also recalled 29,348 Model X vehicles for faulty airbags.
According to a recall notice, Tesla found that the airbags caused ‘unintended configuration during certain low-speed collision events.’
The company has acknowledged its financial shortcomings while citing Musk’s other business ventures as a risk to the safety concerns of Tesla's designs.
“We are highly dependent on the services of Elon Musk, Technoking of Tesla and our Chief Executive Officer,” the company said.
“Although Mr. Musk spends significant time with Tesla and is highly active in our management, he does not devote his full time and attention to Tesla.”
Longtime investor, and CEO of Gerber Kawasaki Wealth Management, Ross Gerber also tweeted: “Tesla stock price now reflects the value of having no CEO. Great job tesla BOD - Time for a shake up. $tsla.”
However, Musk didn’t take too kindly to the feedback, as he responded with: “Please tell us your great ideas, Ross …”
Gerber previously threw his hat in the ring to become the company’s new CEO.
Please tell us your great ideas, Ross …— Elon Musk (@elonmusk) December 20, 2022
He tweeted on December 17: “I’ve notified tesla that I wish to run for the BOD of Tesla. I wish to be added to the proxy statement. It’s time tesla shareholders have a voice on the BOD as well as proper communication with the public. I’m asking for your support. Thanks! $tsla.”
I’ve notified tesla that I wish to run for the BOD of Tesla. I wish to be added to the proxy statement. It’s time tesla shareholders have a voice on the BOD as well as proper communication with the public. I’m asking for your support. Thanks! $tsla— Ross Gerber (@GerberKawasaki) December 16, 2022