Tesla Stock Reaches Lowest Level in 18 Months

On Monday, Tesla shares were down 5%, reaching the lowest level in 18 months, according to The Motley Fool. 

Tesla, along with many other companies, has experienced many issues with production while dealing with the implications of inflation.  The electric car company has been experiencing problems at its Shanghai, China plant considering the country’s zero-Covid policy, still enforcing restrictions and quarantines. This has negatively affected productivity. 

Another issue that seems to be affecting Tesla is Musk’s recent acquisition of Twitter in a $44 billion deal. Shortly after he took over, several companies announced they would be suspending Twitter advertising until they had a clear understanding of the new direction of the social media platform. “That could mean lower cash flow, and Musk might need to service the debt interest payments from his own funds,” The Motley Fool reported. 

“Tesla shares are down 15% since Musk finalized the Twitter deal on Oct. 27. Since Musk announced his bid on April 25, Tesla shares have lost a total of 43% of their value to $191.30. This represents a drop in market value of approximately $454 billion … The more Musk is involved in Twitter, the more Tesla sinks in the stock market,” per The Street.