It seems Tesla, the electric automotive company, is having a difficult time keeping financial troubles at bay. Just a few days back, Tesla’s stock dropped to the lowest in two years and the company credit rating was downgraded. Now for the first time in a year, Tesla worths less than Ford. Currently, Tesla’s market capitalization stands at $42.063 billion as compared to Ford which is capitalizing at $43.588 billion.
Amidst the stocks nosediving and Tesla’s self-driving car crash, the company’s stock has hit a new 52-week low. The stock price of both automotive companies is on a downward trail, but Ford is now catching up and an upward trend has been observed in the last month.
When Tesla overtook the market value of Ford, it garnered much appreciation and also speculations from the technology industry. While it was termed as the wave of future, may experts cautioned that Tesla’s stock price may be overvalued. It seems that Elon Musk is putting a good show of being a great sport by tweeting on April Fool’s Day that his company is bankrupt.
Tesla Goes Bankrupt
Palo Alto, California, April 1, 2018 — Despite intense efforts to raise money, including a last-ditch mass sale of Easter Eggs, we are sad to report that Tesla has gone completely and totally bankrupt. So bankrupt, you can't believe it.— Elon Musk (@elonmusk) April 1, 2018
What remains to be seen is how Tesla will be coping up with financial and production deadlocks, while the pessimism amongst investors and creditors increase for the company’s inability to meet milestones and production targets.
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