The market value of US carmaker Tesla is already lower than that of mining company Exxon Mobil. Tesla shares have lost over ten per cent of their value since the start of this week. But the full-year result is much worse.
Decline in share value
Shares of US carmaker Tesla are currently trading around the $138 level. That’s 13.5 percent less than a week ago. Then, as of Monday, Tesla shares had lost more than a tenth of their value. But since the start of this year, the electric car maker’s shares have been cheaper by around two-thirds.
Loss of emotional support
Thus, Tesla’s market value has fallen to just under $432 billion. That’s even less than what the market value of mining giant Exxon Mobil is. According to experts, Tesla shares show a withering of “emotional” support, and only the fundamentals that have already been factored into the price by investors remain.
“Technology is a very emotional stock. Moreover, Tesla is running into stiff competition in China,” Evercore analyst Chris McNally said for the MarketWatch.com portal. At the same time, Evercore lowered its target price for Tesla shares to 200 from $300 previously.
