Unknown road: what awaits Tesla after a 64% drop in shares

In 2021, investors were actively buying Tesla shares - the popular company of billionaire Elon Musk successfully survived the covid-19 pandemic , car sales were growing rapidly, and it seemed that the automaker would cope with any economic and political challenges. As a result, in November 2021, the price of Tesla paper soared to a peak value of $400.

However, in 2022, the company's position changed dramatically, stock quotes collapsed by a record 65% at the end of the year. Tesla founder Elon Musk has become the first person in the world to lose more than $200 billion in a year amid a sharp decline in Tesla's capitalization.

At the beginning of 2023, Tesla shares continue to trade near the $120 mark; in early January, the price rolled back by more than 74% from the peak of 2021. Analysts and experts are arguing about whether Tesla can be considered undervalued now or in the future quotes will fall below $100 and the position of the current market leader in electric vehicles will be greatly shaken under the pressure of growing competition, the threat of a recession and problems associated with a large share of sales in the Chinese market.

Has the golden age for the electric car maker come to an end?