After reporting its Q1 earnings results, Tesla’s market value fell by almost $56 billion, due to a 24% YoY decrease in profit caused by the company’s aggressive price cuts, which fell short of Wall Street expectations. The significant drop in share prices was a result of the company’s financial results, not meeting market projections.
As of Thursday, Ford had a total market cap of $47.3 billion, while General Motors had a market cap of $46.8 billion. Despite Thursday’s selloff, Tesla remained the ninth most valuable company globally, with a market value of $515 billion, according to data from CompaniesMarketCap.
Tesla’s shares fell by nearly 10% to $162.99 at the end of Thursday’s trading.
