Tesla Investors Have Lost A Total Of $8.5 Billion Since January


Traders stood in frantic anticipation as they watched agape at electronic boards monitoring Tesla's climb to an all-time peak of $969.99 last week. They knew something else was about to unfold.

Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China Jan. 7, 2020. (Photo: REUTERS/Aly Song/File Photo)

Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China Jan. 7, 2020. (Photo: REUTERS/Aly Song/File Photo)

Tesla saw trading volume on the first three days of the week that smashed the previous record rates in the business. Its average day up to that point saw around 18 million shares changing hands.

Then, it blew past the mark on the succeeding days, with high daily trading volumes of 47 million shares, 60 million shares and 48 million shares, respectively.

Tesla Inc's skyrocketing shares have turned out to be a shocking collapse for venture capitalists who have "gambled" their investments on the belief that Tesla stocks will continue their strong ascent. Unfortunately, they did not.

These creditors have mostly lost the battle for years, as Tesla's stock remained buoyant even as the maker of electric cars racked up billions of dollars in annual losses.

Suffering suddenly went from chronic to intense as shares of Tesla soared to heights that few followers would have dared to expect. After its earlier tug-of-war-like moves, its stocks plunged 10 percent and capped the week with below-average trading volume.

In the first week of February alone, they lost $2.5 billion as the company's stocks reported a series of multibillion-dollar daily advances, according to figures released by S3 Partners. Since the start of the year, investors have lost a total of $8.5 billion.

Since this Silicon Valley electric car manufacturer is receiving so much interest now, everyone is wondering: what is Tesla's future like?

Tesla's portfolio has been experiencing extreme uncertainty ever since its initial public offering. While the share price fluctuated here and there, it managed to rise from $23.83 in June 2010 to $383 by June 2018.

A downtrend began in November 2018 in the midst of doubts over diving consumer demand and company profitability.

Meanwhile, China's booming market for electric cars is very crucial for Tesla, especially since the company started unveiling the Model 3 vehicles from its Shanghai Gigafactory in January.

In addition to production shutdowns, a Tesla sales executive announced they would shutter their stores in mainland China.

Tesla shares dropped over 7 percent, as another period of above-average volume saw the stock see-saw throughout the day.

The bottom line: As with any other stock, there are several elements influencing the price of Tesla's share. These include quarterly earnings reports and the broader stock market's financial performance. Emerging rivals in the electric vehicle industry are also significantly impacting the valuation of Tesla stock.