Tesla’s stock has been in a free fall for the last week. While shares opened up slightly higher than their previous close today, the overall trend over the last seven days has pointed downward. Last Friday, its price hit $222.24; today the stock hovers around $196.
That decline is even worse when you look at where the stock was only nine months ago.
Last August, Tesla hit a high of $387.46 per share, which is nearly double what the stock is today. Then, the company’s market capitalization was around $64.75 billion. Tesla’s market cap today is $35.51 billion, meaning the company has lost more than $30 billion in value in less than a year.
As always with Tesla, myriad factors are at play. Its most recent earnings report disclosed huge losses. As a result, analysts have lowered their expectations, institutional investors have been selling it off, and Elon Musk warned employees that the company–at its current burn rate–has about 10 months to break even. And, of course, there’s also the fact that Musk’s behavior, known to be erratic, certainly doesn’t assuage Wall Street concerns. Put together, things look messy if not dire.
Tesla and Musk have, of course, faced difficult financial times before, and they’ve managed to steer through. At the same time, $30 billion is a lot of value to lose, so the company will have to work extra hard to reignite Wall Street’s trust. Add to that a looming trade war—which makes for an unstable financial landscape—and you can see why now is not the best time for Tesla to be experiencing bumps in the road.