Shares of Elon Musk’s EV company, Tesla Inc., fell for the fifth straight week this week and closed at $ 580.88, down 1.5%.
This is the longest streak of weekly losses for the company since March 2018 and comes as investors pull out of riskier stock options.
Their mood is driven by growing concerns about inflation and its impact on the U.S. economy, as well as intense outbreaks of Covid-19 infections in some countries.
The plunge is also followed by several unflattering headlines and the unveiling of a formidable electric pickup truck from Ford Motor Co.
The steady stream of negative incremental news on Tesla over the past month, including multiple crashes, signs of slowing sales in China and a potential delay at the company’s Germany plant, has made it difficult for the stock to find favor with investors in a largely risk-free trading environment.
Musk’s persistent Bitcoin tweet, which crashed earlier this month, also didn’t help Tesla’s shares.
“Musk appears to be losing some of his mojo with retail investors,” said Craig Irwin, analyst at Roth Capital Partners, reflecting on the stock’s recent weakness. announcements from traditional automakers and possibly other leaks regarding tech giant Apple Inc.’s plans to enter space.
“It would distract from Tesla and likely put pressure on stocks,” Irwin said.
Musk recently lost his position as the second richest person in the world to LVMH chairman Bernard Arnault as shares in the electric vehicle maker.
Musk, who was number one on the Bloomberg Billionaires Index as recently as March, now has a fortune of $ 160.6 billion, down 24% from his January high.
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