Tesla's Drop in Market Capitalization Equals Combined Value of Almost All Manufacturers

Tesla Market Loss 2022 6 photos
Photo: Tesla, Statista
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Do you remember when you heard about Tesla for the very first time? It probably was at a moment when General Motors, Toyota, and Volkswagen Group were battling to become the world's biggest carmaker in the world title. Like 10-12 years ago.
Since then, the auto industry changed like crazy. Tesla not only made the entire car industry shift from internal combustion engines to battery-electric propulsion. It also became the most valuable carmaker in the world. By a stellar margin.

On January 3, 2022, Tesla was valued at more than $1.2 trillion. Which is 1.200 billion dollars, more than the entire auto industry combined. It’s hard to imagine that a less-than-20 years old brand is valued more than all the other manufacturers, most of them being about 100 years old.

But you know what they say: the bigger they are, the harder they fall. The Wall Street frenzy wasn’t there to last, as many analysts considered Tesla stock over-valuated. And you can’t ignore Elon Musk’s contribution to the rise and fall of Tesla either.

2022 was probably the most controversial year for man who was once the biggest billionaire on the planet. You know exactly why – Twitter’s absurd hunt. Only time will tell if “absurd” is truly genius, but for now, it looks like a very costly strategic error for Elon.

Not at the same level as Russia’s dreadful war on Ukraine. But this invasion is also a big factor in Tesla’s devaluation because it quickly sparked big problems for the global economy. As Tesla’s value is based on its high-growing potential, it’s only natural for its stock to decline.

So, where are we now? Tesla’s stock dropped like a rocket (pun intended) from some $1.2 trillion to less than $0.5 trillion. This is a two-thirds market loss, which many tend to consider as a swan song for Tesla. But have no fear, we’re far from saying “R.I.P. Tesla.

As it turns out, Tesla is still the most valuable carmaker. Statista did the math: the roughly $800 billion loss is almost the same as the combined market capitalization of all of the major car makers in the world. It's almost hilarious, don’t you think?

Toyota, Volkswagen, Mercedes-Benz, BMW, General Motors, Ford, Stellantis, Honda, Hyundai, KIA, Nissan, and Renault – these are the biggest names in the car industry today. Combine their values and the result is still less than Tesla’s devaluation. LOL!

Of course, Twitter’s boss, whom investors fear is becoming less and less Tesla’s boss, couldn’t resist tweeting his opinion: “As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are *not* guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop.

We have to give him credit. After all, he had to sell a lot of Tesla stock to raise capital for buying Twitter, didn’t he? Also, it’s worth mentioning that no other big car manufacturer had such a big market cap loss. This only implies that Tesla’s more-than-one-trillion stock was simply overvalued in the first place.

So it shouldn’t come as a surprise that Tesla is the worst-performing in 2022, beating Zuckerberg’s Meta. Or maybe it’s simply Elon’s moment of “karma is a b*tch.
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About the author: Oraan Marc
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After graduating college with an automotive degree, Oraan went for a journalism career. 15 years went by and another switch turned him from a petrolhead into an electrohead, so watch his profile for insight into green tech, EVs of all kinds and alternative propulsion systems.
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