Tesla stock shrink for seventh day straight, closes down at ‘nightmarish’ 11% at $109.10

Shares of Elon Musk's EV company Tesla closed down 11% at $109.10 on Wednesday projecting a sharp slump for the seventh straight day, shrinking the market value of the firm by a whopping $345 billion. Tesla dwindled from top position, falling below Walmart Inc., JPMorgan Chase & Co., and Nvidia Corp on the S&P 500 Index, losing the place it acquired in December 2020, two years ago. As Tesla's worth continued to shrink, Musk saw more than $130 billion loss, but still retains the position of world's second richest person in the world. Tesla's shares dropped 68% year-to-date, according to the Bloomberg Billionaires Index. 

10% sell-off to decline market value manyfolds

The 10% sell-off of the company is expected to further decline Musk's wealth by an estimated $7 billion to $8 billion, the market experts predicted this week, questioning the company's overall success factor as rival carmakers pose more serious challenges for the EV maker. The sales will also likely decline in months ahead as the world enters 2023 due to COVID-19 outbreaks in Tesla's largest manufacturing country China, and demands are expected to pummel. Reports suggest that the fall of Tesla's market value by 11.5% on Tuesday this week to $109 is the lowest level since August 2020. It also accounts for a steep 73% decline since the highest $400 witnessed in November 2021.

This comes on the heels of Tesla's decision to close down a Shanghai factory in January this year, and based on the internal plans accessed this week, the company will halt production to observe the Chinese New Year in 2023. In an analysis,  Adam Crisafulli of Vital Knowledge Media told Forbes that the news of Tesla's declining share values is only the "latest in a series of cautious headlines" about Tesla about to hit during the upcoming year. Just last year, Musk's firm had a 9-month decline that cost it 800 billion in market value.

The poor performance of Tesla is also being attributed to the slow tech sector market that was down by a whopping 40.8 percent year to date, hitting several-year lows this week. Tesla's billions' worth of losses may be stemming from Musk’s acquisition of Twitter and his inability to manage the two companies. 

Last month, Billionaire Musk announced that he does not want to be the CEO of any company, and that he was on the lookout for the new CEO for Twitter, claiming that anyone who takes over the position "would be foolish enough." “I expect to reduce my time at Twitter and find somebody else to run Twitter over time,” Musk noted. "I will resign as CEO as soon as I find someone foolish enough to take the job! "After that, I will just run the software and server teams," he tweeted.