Shares of Elon Musk’s automaker have fallen 29% in less than 10 weeks, closing on Wednesday at their lowest level since May.
As a result, Tesla’s market value has fallen from nearly $800 billion to just over $550 billion — a total loss of $234 billion and, as notes Business Insider, this is more than McDonald’s ($212 billion), Disney ($202 billion), and Cisco ($199 billion).
This decline is also close to the capitalization of Netflix ($259 billion) and Coca-Cola ($257 billion) and exceeds the value of American Express ($158 billion) and Nike ($148 billion). It is also more than double the value of Starbucks ($104 billion) and more than three times the size of Chipotle ($71 billion), FedEx ($62 billion) and Palantir ($58 billion).
The rapid decline in Tesla’s stock has also led to a decrease in Elon Musk’s net worth by almost $40 billion this year — to below $190 billion. The entrepreneur has now dropped to third place in the of the Bloomberg billionaire ranking, losing first and then second place to Bernard Arnault and Jeff Bezos.
Compared to the beginning of 2020, Tesla shares have increased almost 5 times. However, they are 60% lower than the peak in November 2021, when the automaker was valued at $1.2 trillion.
Among the reasons for the stock’s decline are signs of declining demand for electric vehicles among consumers and car rental companies such as Hertz. Tesla was also forced to cut prices in the face of fierce competition in China from companies such as BYD.
It’s also worth noting that Tesla’s value is still more than 10 times higher than that of General Motors ($46 billion) or Ford ($49 billion).