Electric vehicle manufacturer Tesla, famous in part due to its CEO Elon Musk, who also holds two other CEO positions, has seen its stock plunge 72.3% since its peak in November 2021, according to data from Morningstar.
Dan Brocklebank, UK director of Orbis Investments, said Tesla's tumbling share price was due to "gravity", as the high liquidity dynamics that allowed its valuation to rocket have now faltered. Expensive stock According to Brocklebank, the "core fundamental challenge for Tesla" was sustaining the rapid growth necessary to justify the firm's share price, which is being hampered by the growth of products from competitors. He said: "At the end of the day, valuation always matters. A year ago, the world was awash with liquidity and in the throes of an epic ‘everything bubble', in which ...
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