Tesla Market Cap Plunges Below $500 Billion: First Time in Two Years

Tesla (NASDAQ: TSLA) stock extended its decline on Tuesday, which pushed the company’s market capitalization to below $500 billion. This marks the first time Tesla's valuation has dipped below this significant milestone in two years, raising concerns among investors and analysts alike.

Minutes after New York, trading closed, the news spread quickly. The relentless decline in the shares of Tesla Inc. has pushed the electric-vehicle maker’s valuation to close below the half-trillion dollar mark for the first time since late 2020.

What's driving this dramatic drop? A confluence of factors, including Elon Musk's Twitter acquisition and its impact on Tesla's brand, concerns about slowing demand for electric vehicles, and increased competition from other EV manufacturers, are contributing to the downward pressure on Tesla's stock.

Tesla’s (TSLA) market capitalization has fallen below $500 billion U.S. as its stock continues to sink. The electric vehicle maker’s share price closed at $157.11 U.S. on Tuesday, further solidifying the downward trend. This decline raises questions about the company's future performance and its ability to maintain its dominant position in the EV market.

Investors are closely watching Tesla's upcoming earnings reports and announcements for any signs of a turnaround. The company's response to these challenges will be crucial in determining its long-term prospects.