Musk's Twitter 'Circus Show' Leads To $575B In Tesla Stock Losses

Tesla stock fell 7% to $628 on Tuesday, pushing the stock down nearly 49% from its all-time high in November and wiping over $30 billion from Tesla's market capitalization, which has fallen to $650 billion from a peak of more than $1.2 trillion, Jonathan Ponciano reported for Forbes.

Photo Insert: Shares of Tesla have racked up big losses since Musk suggested he would sell about 10% of his stake in November.

Prompting the steep decline, Daiwa analyst Jairam Nathan on Tuesday morning lowered his price target for Tesla shares to $800 from $1,150—telling clients COVID lockdowns in Shanghai, where the electric-vehicle maker operates its so-called Gigafactory, as well as supply issues impacting its Austin and Berlin plants, will cut deeper into earnings than previously expected.

Nathan forecasts the headwinds will push deliveries this year down by 180,000 vehicles, meaning Tesla will deliver 1.2 million vehicles this year, as opposed to the 1.4 million units previously expected.

The note comes one day after Wedbush analyst Dan Ives cautioned Twitter's shareholder meeting this week will "surely kick off some more fireworks" between Musk and the social media firm's board, adding to the "major overhang" as investors worry the proposed takeover could divert his attention from Tesla.

"Tesla investor patience is wearing very thin," Ives said about the resulting back and forth, with Musk suggesting he'll lower his offer due to concerns about bots on Twitter, while the company's board says it won't alter the deal.

"This [takeover] circus show has been a major overhang on Tesla's stock and has been a black eye for Musk so far," Ives said Monday, adding that "major market pressure for tech stocks" has only added to the uncertainty.

Shares of Tesla have racked up big losses since Musk suggested he would sell about 10% of his stake in November, with prices only collapsing further as the broader market struggles in the face of rising interest rates.

Adding to concerns for Tesla, however, "the worst supply chain crisis seen in modern history" has threatened the firm's production in highly profitable China, notes Ives. The tech-heavy Nasdaq has plummeted 29% this year. Tesla, meanwhile, has plunged 47%.

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