Tesla stock continued to remain in reverse gear on March 5 with the share price down by 10 per cent in early trading. The share price closed at 3.8 per cent down to $567 billion. Tesla's share price has declined more than $250 billion of the value of the electric car company. The decline in share price has led to a decrease in Tesla's market value from $834 billion to about $567 billion.
Tesla's share price is seeing a downfall as investors are worried that the car company may be vastly overvalued. Also, rising US bond yields are making companies that pay small dividends unappealing and Tesla has never paid dividends, reported The Guardian citing analysts. Elon Musk, the Chief Executive Officer of Tesla company who was briefly the world's richest man has lost $27 billion since Monday. According to Bloomberg Billionaires Index, he is still at No. 2 position but now he's almost $20 billion behind Jeff Bezos, CEO of Amazon. The net worth of Tesla CEO Elon Musk is $156.9 billion.
Last month, Elon Musk-owned Tesla Inc. had invested $1.50 billion in bitcoin, which led to a rapid surge in the cryptocurrency's market value. Tesla, in a filing with the Security and Exchange Commission (SEC), also added that it will soon begin accepting bitcoin as a form of payment for its products, which also contributed to the massive rise in the stock prices of bitcoin. Tesla said it is investing in digital assets to provide more flexibility to further diversify and maximize returns on cash. Musk himself helped in the surge of bitcoin's market value after he tweeted how investing in cryptocurrency is not a bad idea.