Elon Musk Takes a Hit: Tesla Stock Loses $700 Billion in Value– Triple Disney’s Total Market Cap

Tesla’s market capitalization has reportedly plummeted from over $1.2 trillion to $530 billion in the past year alone. The $760 billion loss is the equivalent to triple the entire market cap of The Walt Disney Company

Business Insider reports that Tesla’s market valuation has plummeted by nearly $700 billion from its peak a year ago. Insider notes that the $670 billion decline is equivalent to the market value of three Disneys, four Nikes, or six Starbucks.

Tesla’s market cap rose from under $100 billion at the start of 2020 to over $1.2 trillion in November, boosting Elon Musk’s automaker’s share price from a $30 split-adjusted price to over $400. However, it has plummeted by almost 60 percent since then to $530 billion as of Monday’s market close.

This massive market value drop isn’t far off the entire worth of Warren Buffet’s firm Berkshire Hathaway, valued at $685 billion. Insider notes that Tesla’s market-cap drop is equivalent to triple the entire market value of McDonald’s ($201 billion), Disney ($178 billion), or Wells Fargo ($178 billion).

Only five S&P 500 companies — Apple, Alphabet, Amazon, Microsoft, and Berkshire Hathway —are worth more than the $670 billion in market value that Tesla has lost over the past year, reflecting a wider exodus from growth stocks and concerns that Musk’s new business dealings overseeing Twitter will be a major distraction for the CEO.

Tesla has promised for some time that most of its profits will be made in the future, but in the current market conditions, stocks such as Tesla become less attractive to investors.

Add to this that Musk recently purchased Twitter for $44 billion and has cashed in billions of dollars worth of Tesla stock to finance the venture, many investors are becoming worried. Tesla shareholders are also worried that Musk could lose focus over time as he attempts to restructure Twitter and may even sell more Tesla shares to cover costs, either of which would further affect Tesla’s stock price.

Reporting from Breitbart.