Elon Musk hits back at being blamed for Tesla cratering toward its worst year ever, says people are saving instead of buying stocks
's share price cratering this year – saying that rising interest rates have fueled a broader market sell-off by making cash more attractive than stocks.
"In simple terms: as bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop," the world's second-richest manThe Federal Reserve has raised interest rates from near-zero to around 4.5% this year in a bid to tame inflation, which is running close to forty-year highs.
That means that cash held in savings accounts now offers higher yields to investors, who may already be cautious about snapping up stocks in a year when the benchmarkRising interest rates also weigh on growth stocks like Tesla because borrowing becomes more expensive, chipping away at the company's future cash flows.
Musk has repeatedly blamed the Fed for Tesla's poor performance in 2022, when shares have cratered 61% – putting the EV manufacturer on course for its worst year ever.But shareholders are worried that Twitter, which Musk acquired for $44 billion on October 27, has become a costly distraction for the Tesla and SpaceX chief.
Tesla shares have plummeted 38% since Musk finalized his takeover of the social-media company – with the tech-heavyMusk was responding to longtime Tesla bull Ross Gerber, who tweeted earlier on Tuesday that the company's current share price"
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Tesla investors plead with Elon Musk to quit Twitter, save Tesla stockTesla investors plead with Elon Musk to leave Twitter and refocus on the electric car company in 'a vote of no confidence in Elon'
Consulte Mais informação »
Tesla investors plead with Elon Musk to quit Twitter, save Tesla stockTesla investors plead with Elon Musk to leave Twitter and refocus on the electric car company in 'a vote of no confidence in Elon'
Consulte Mais informação »
Tesla stock jumps after poll tells Elon Musk he should step away from Twitter“No one wants the job who can actually keep Twitter alive,” Musk said in another post. “There is no successor.”
Consulte Mais informação »
Elon Musk has chosen Tesla over Twitter as the EV maker's stock fallsInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Consulte Mais informação »
Poll shows Twitter users favor removal of Elon Musk, sending shares of Tesla higherAbout 17.5 million Twitter votes were cast in favor of Elon Musk stepping down from the company, Musk’s Twitter account said Monday, a day after he posed the question to users of the social media platform.
Consulte Mais informação »
Tesla accused of illegally firing two employees after they criticized Elon MuskTesla employees are the latest to accuse Musk of retaliation.
Consulte Mais informação »