Tesla is down $56bn overnight - more than the market capitalisation of Ford and General Motors

Tesla lost a significant portion of its market capitalisation last week. Despite this, it continues to be one of the top 10 most expensive companies.

Here's What We Know

A disappointing financial report for the first quarter of 2023 caused Tesla's share price to plunge 9%. The market capitalisation fell to $517bn, but despite this, the carmaker remained in the top ten most expensive companies, ranking ninth.

The drop in the stock price led to a $56 billion drop in market capitalization in 24 hours alone. In comparison, the market capitalisation of General Motors and Ford is $46.8bn and $47.3bn respectively.

Elon Musk's company was able to deliver a record number of electric cars in early 2023. This was achieved not least by multiple price cuts, which led to a 24% drop in profits. Profit margins have slipped below 20%.

The American billionaire's fortune decreased by $12.6 billion overnight. Apart from Tesla not very good financial report, not very successful launch of spaceship Starship and problems with Twitter Blue subscriptions influenced it.

Source: Business Insider