[mrmistoffelees]

Originally Posted by Damien

General fall in tech stocks that were overvalued during COVID. The average drop since the start of the year is 30%. Tesla is also more vulnerable than Apple/Microsoft/Google as so much of its promise was unproven, based on the idea it could eventually dominate the electric car space, and that's being undermined by the progress of the traditional car makers. People are starting to correctly see Tesla as a car company rather than a technology company and it's undermining its value.

The drop in the last month though - 35% instead of the average of 8% for other companies - is being put down to concerns over Musk's dedication to Telsa and his erratic behaviour. He also sold a lot of stock himself over the last month which spooks existing shareholders obviously.

I think personally the order of importance is:

1. Telsa was overvalued, other car companies are catching up, people don't see Tesla dominating in the way they had hoped
2. General Stock Market Correction
3. Musk

It’s a stock market correction as the primary focus for tech companies/startups was growth at any cost. Now, profitable growth is the order of the day.

The above combined with companies going on hiring sprees during the early days of the pandemic is now leading to the ongoing redundancies