(Bloomberg) — Tesla Inc. is poised to dip below Facebook parent Meta Platforms Inc.’s market value for the first time in over a year, marking yet another grim milestone in the stock’s downward spiral.
(Bloomberg) — Tesla Inc. is poised to dip below Facebook parent Meta Platforms Inc.’s market value for the first time in over a year, marking yet another grim milestone in the stock’s downward spiral.
Mega-cap tech companies, key players in the last Wall Street bull market, struggled last year as they bore the brunt of rising interest rates. But for Tesla shares at least, the New Year has brought more double-digit losses, with latest drop driven by news of another round of price cuts on the electric carmaker’s Model 3 and Y vehicles in China.
With Tesla shares down as much as 6.7% in US premarket trading on Friday, its market capitalization looks set to fall below that of Meta, having at one point last year been almost three times the size of the latter. If premarket moves hold, Meta will have a market value of $330.3 billion, surpassing Tesla’s at $329.7 billion.
The two companies have very different businesses, yet the reshuffle is significant as it marks yet another change in how investors rank Big Tech companies’ valuations and prospects.
The sharp value declines over the past year have ejected both companies from the elite $1 trillion stock market club in the US – an exclusive grouping that only six firms ever made it into. Only three Wall Street firms are now worth more than $1 trillion — Apple Inc., Microsoft Corp. and Alphabet Inc.
Tesla’s stock closed out 2022 with a record 65% tumble, eclipsing the Nasdaq 100 index’s 33% fall. In the first trading session of 2023, the Austin, Texas-based automaker’s shares fell more than 12% after it delivered fewer vehicles than expected last quarter, despite offering hefty incentives in its biggest markets.
Meta, in contrast, has fared better in recent months. Its shares have climbed 43% from a November low, as the social media company embarked on drastic cost-cutting measures that included culling more than 11,000 jobs. Since the start of this year, it has gained more than 5%.
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