Tesla has lost more than half its value since its shares peaked less than three months ago.
As global stock markets tumbled on fears that Donald Trump’s trade wars will fuel inflation and tip the US into recession, shares in the electric car maker fell 15 per cent to $222.
That took losses since its highest ever close just shy of $480 in mid-December to 54 per cent.
The slump has wiped £645billion off the value of the company and £120billion off Musk’s own fortune.
The tycoon – a close ally of President Trump – is still the world’s richest man with a fortune of £255billion while Tesla is valued at £555billion.
Other members of the so-called ‘Magnificent Seven’ were also hammered yesterday as the tech-heavy Nasdaq index fell more than 4 per cent to its lowest level since September.
Slump: Tesla boss Elon Musk (pictured with Donald Trump) – saw shares in the electric car maker fall 14% taking losses since its highest ever close in mid-December to 53%
Analysis by investment platform AJ Bell found £1.2 trillion has been wiped off the value of the seven tech giants so far this year.
Tesla has been the worst hit with a fall of 40 per cent this year while Nvidia is down more than 20 per cent.
Dan Coatsworth, investment analyst at AJ Bell, said: ‘Tesla has been a car-crash of an investment this year.
‘So much for Elon Musk having the magic touch thanks to his new-found friendship with Donald Trump.’
The latest slump came after analysts at UBS slashed their forecasts for the number of cars Tesla will deliver and cut the target price on the stock to $225.
Tesla has been hit by competition from China as well as backlash among motorists at Musk’s foray into global politics.
Sales in Germany fell 76 per cent last month while they were down 66 per cent in Australia and more than 50 per cent in Italy and Portugal.
‘In some circles, it’s now become an embarrassment to drive a Tesla,’ said Coatsworth.
‘The brand damage could be immense and it’s costing the company sales.’ The tech-stock rout came as global stock markets tumbled with the FTSE 100 down nearly 1 per cent in London and the Dax off 1.7 per cent in Frankfurt.
In New York, the S&P 500 and Dow Jones Industrial Average were on the slide alongside the Nasdaq.
Cryptocurrencies were also hit with bitcoin tumbling below $80,000 having peaked above $109,000 on the day of Trump’s inauguration in January.
The latest market turmoil came amid mounting fears that a trade war triggered by Trump’s tariffs will weaken the global economy and push the US into recession.
‘Unease about the effect of Trump’s tariffs hangs over financial markets,’ said Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown.
‘The prospect of a recession in the US is lurking.’
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
Facebook Conversations