Tesla stock took end of week nosedive

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Price volatility among US-listed 'big tech' stocks is quite rare, and despite the decreased values that many US tech stocks suffered a few months ago, the general level of stability has remained.

The large group of well capitalized companies that represent some of the most popular stocks on the New York exchanges include Amazon, Tesla, Google, Meta (formerly Facebook) and Apple.

The unusual member of this 'big tech' group is Tesla, because unlike the others, it is not an internet company but an electric car manufacturer, however it has its origins firmly planted in Silicon Valley and is as disruptive. It is also a major force in development, to the extent that it has ten times the market capitalisation of established motor manufacturers such as Ford, despite being much smaller and 100 years younger.

At the end of last week, however, Tesla stock began a bumpy ride and declined in value by a considerable 9.22% on Friday's New York trading session.

Tesla stock began trading at a 5-day high point of $790 per share on Thursday last week, but by the end of Friday's session, it had decreased in value to $703, putting it at a five-day low.

Elon Musk, founder and CEO of Tesla, is a Silicon Valley stalwart, having begun his career in the 1990s at PayPal, and since then having invented many fascinating items, is well known to be a sharp and individual-thinking businessman.

He often rails against the mainstream view, which is why his ideologies and ventures are often successful, and he has often vocally criticized the narrative on many things, one of which being the efficiency of businesses.

On that same line, Elon Musk stated on Thursday last week that he is looking at cutting 10% of the staff at Tesla, which currently employs approximately 100,000 people worldwide.

He also sent an email to Tesla executives which recommended a hiring freeze, with concerns about the immediate future of the US economy being the main reason.

A few days ago, Elon Musk ordered all staff back to the office to conduct their 40-hour-week work, or face termination of employment, in line with his perspective on lockdowns and work-from-home culture, which he disapproves of.

Now the maximum level of efficiency is in place, and Tesla orders are still rolling in with no sign of tailing off, Elon Musk appears to be looking to streamline the company to cope with the current circumstances in the United States in which the economy has been weakening for some time.

Elon Musk's maverick-like approach to business has been a roller coaster ride over the long term, despite the stability of Tesla as part of the 'big tech' stocks. Over the past few weeks, Tesla stock has declined in value by 22% since the billionaire used his shares to finance a planned acquisition of Twitter, which now appears to have stalled and stock stabilized again.

With a company the size of Tesla in terms of market capitalization and stock market presence, it is hard to imagine any serious volatility, but news of direct activity within the company such as reduction of workforce is enough to make the small difference that could have contributed to Friday's decline.

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