Tesla’s Market Capitalization Has Fallen Colossally: But Why?
Tesla’s market capitalization dropped significantly due to certain reasons. So what are these reasons? Why is Tesla losing value? Here are the details!
Tesla, one of the world’s largest car companies, has successfully increased its market capitalization with its recent rise. However, this situation started to change with recent events.
Things started to go not as desired in Tesla. With the decline in sales in its market, its market value has also declined significantly. This serious loss could put Tesla in a difficult situation.
Tesla’s Serious Loss in Market Value
On February 28th, Tesla’s market capitalization was exactly $643.46 billion. However, exactly 1 week later, as of March 6, it is seen that this value has decreased to 566 billion dollars.
There are two important reasons for Tesla’s $ 77 billion loss. One of them is the arson and fire in its large factory in Berlin, Germany. In the fire, the factory was severely damaged and production stopped.
The other reason is that sales in China decreased by 19% compared to February last year. The reason for the decline was that competitors updated their prices during China’s Lunar New Year. Tesla couldn’t compete and BYD took over the market by selling cheaper models.
