Tesla’s Demand Troubles Spell a Terrible Start to the Year
- Tesla shares have declined 8.2% in the first week of 2023
- Facebook parent stock has rallied 46% from a November low
Customers at a Tesla Inc. showroom in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Tesla Inc. shares kicked off the new year on an ominous note, buckling this week under renewed concerns about weakening demand for its electric cars, and sending its market value briefly below Facebook parent Meta Platforms Inc.’s for the first time in over a year.
The Elon Musk-led EV maker’s shares fell as much as 7.7% to $101.81 in early trading on Friday. The stock later erased the losses to close up 2.5% as the broader market rallied after economic data showed wage gains have slowed down, a development that can help the Federal Reserve fight inflation. Earlier in the session, Tesla’s market capitalization dipped to around $321 billion, dropping below Meta’s roughly $334 billion.