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Tesla’s Market Cap Loses Nearly $56 Billion in One Day

That's more than the entire market cap for both Ford and GM.

Tesla's current model lineup Tesla

It’s been a bad couple of days for Tesla, but there’s no reason for the company or its stockholders to panic yet.

The EV maker’s market cap plunged by nearly $56 billion dollars on Thursday following a stock selloff in the wake of the company’s worse-than-expected first-quarter earnings call, according to Market Insider. That number is so big that it actually dwarfs the market cap of Ford and General Motors.

During Wednesday’s earnings call, Elon Musk’s company announced a net income of $2.51 billion during the first three months of 2023. While most companies would love to earn that much in a quarter, the figure represented a 24 percent drop from the same period last year. The decrease, which has been attributed to the company’s aggressive price cut strategy, led to a selloff of Tesla shares that sent its stock price falling by 9.75 percent (or $55.69 billion) to $515.72 billion, according to YCharts data.

The Tesla Cybertruck
The Tesla’s Cybertruck launch could help boost profits for the company Tesla

Still, Tesla is not in a financial danger zone. The reason why Tesla could lose $56 billion in one day is that it is worth 10 times that. It is the most valuable car company in the world and no one else is even close. Even after the loss, the company’s market cap at the end of trading on Thursday still made it the ninth most valuable company in the world. The next most valuable car company, Toyota, was worth $181.71 billion on Thursday. That’s a difference of $334 billion, or nearly twice Toyota’s market cap. The next two most valuable US-based automakers, Ford and General Motors, were worth $48.71 billion and $48.23 billion respectively. Tesla’s doing just fine in comparison to everyone else.

Wednesday’s earnings call wasn’t all bad, though. During the call, Musk revealed that the automaker plans to hold a delivery event for the Cybertruck before the end of the third quarter. No one knows exactly what the event will involve, but it suggests that the company will finally start building the eagerly anticipated EV this summer and begin mass production sometime next year.

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