Tesla’s Q4 market cap loss tops its 10 EV competitors’ cumulative market worth

United States-based electronic vehicle (EV) manufacturer Tesla is undergoing a turbulent moment recording a sharp decline in market capitalization. The capital outflow comes as the company battles internal and external factors that might threaten its market dominance.

In particular, data acquired and calculated by Finbold as of December 26 indicates that in 2022 Q4, Tesla’s market capitalization stood at $388.87 billion, representing a drop of 52.87% or $436.32 billion from the $825.19 billion capitalization recorded on October 1.

Indeed, Tesla’s market cap losses of $436.32 billion in the last quarter of 2022 have surpassed the total capitalization of the company’s top ten competitors. The competing EV manufacturers accounted for a market cap of $280.78 billion in 2022 Q4. Therefore, Tesla lost 55.39% more in 2022 Q4 capitalization than the cumulative market cap of 10 leading electric vehicle manufacturers.

Notably, Tesla’s leading EV competitors include BYD, with a market capitalization of $92.84 billion, followed by Stellantis at $45.14 billion. Great Wall Motors has a market cap of $30.01 billion, with SAIC Motor controlling $24.55 billion in capitalization.

Other notable competitors include Li Auto ($19.20 billion), NIO ($18.32 billion), Rivian ($16.90 billion), GAC ($13.96 billion), Lucid Motors ($11.25 billion), and XPeng ($8.61 billion).

Triggers for Tesla’s drop in market cap

The research attempted to explain some triggers behind the drop in Tesla’s market capitalization. According to the research report:

“The prospects of Tesla have been weighed down by soaring inflation, aggressive Federal Reserve interest hikes, geopolitical tension, and the prevailing fears of a possible recession. Following the sharp drop, critics of the company have also maintained that the stock is undergoing a bubble burst after skyrocketing in 2020 to new all-time highs. Overall, the macroeconomic factors have likely pushed jittery investors to dump their stocks amid concerns about extended economic decline.”

Overall, Tesla’s market capitalization recovery will rely on several factors, with improving economic prospects ranking among the top.