Electric car company Tesla is facing uncertainty over demand as the company is now only worth US$370 billion, down from US$1 trillion, according to Reuters.
The company’s shares showed a 14% decrease at the end of the last year which has carried over into 2023; amid concerns over weakening demand and ‘logistical problems’, according to Reuters.
Tesla has lost more than 65% in market value during 2022, and a slide in the stock market this Tuesday saw US$60 billion wiped off the market value.
This is despite the company selling a record number of vehicles.
Wall Street analysts are said to be expecting more pressure on the stock market in the next few months, as the electric car manufacturer faces competition from other auto-manufacturers, and weaker demand globally for stock.
“Demand overall is starting to crack a bit for Tesla and the company will need to adjust and cut prices more especially in China, which remains the key to the growth story,” said Dan Ives, an analyst at Wedbush Securities.
One of the main concerns has been logistical challenges, which was seen in a gap between production and delivery of the cars, with 34,000 vehicles stuck in transit.
Additionally, Tesla’s market value has dropped by roughly $400 billion since the company’s CEO Elon Musk bought Twitter.
