Tesla's market capitalization evaporated by hundreds of billions of dollars overnight! What happened?

On Thursday, Tesla's market value evaporated by more than $100 billion overnight.

As of the close of the day, Tesla plunged 11.55% to $829.10 per share, the lowest level since October 14 last year, and its market value was $832.636 billion, down $109 billion from Wednesday. The last time Tesla's one-day market capitalization evaporated by more than $100 billion was on November 9 last year.

On Wednesday, Tesla reported full-year earnings: 2021 revenue of $53.823 billion, up from $31.536 billion in the same period last year; net profit reached a new high of $5.519 billion, up 665% from $721 million in the same period last year.

However, in a call to Wednesday's earnings conference, Tesla CEO Musk said that no new models will be launched this year, and the $25,000 version of its Model 3 has not yet been developed. Musk has previously said that he will work hard to reduce the cost of battery production and launch a low-cost car.

That disappointed many investors who were expecting Musk to "update the product roadmap," and the production confirmation of Tesla's Cyberruck pickup truck was postponed until 2023.

According to Bloomberg, Barclays analyst Brian Johnson wrote in a note to customers: "When it comes to product lines, Musk shifted his future plans from car models to robo-taxis and humanoid robots. While robo-taxis are a key part of the bullish Tesla, we are concerned about the lack of a physical product line. ”

Edward Moya, senior market analyst at Oanda Corp, said: "It's clear that Tesla's growth momentum is running out, and this is really weakening Tesla's growth prospects as competitors try to catch up and lack a strategy for low-cost cars around $20,000." ”

In addition to the product line, Tesla Chief Financial Officer Zachary Kirkhorn warned that the recent high input costs could affect the company's market margins. Inflation and rising commodity prices will continue to weigh on Tesla's costs, and the specific impact on gross margins is uncertain.

Tesla's impact has also spilled over to other EV startups, with shares of companies such as Rivian, Lucid and Fisker all down about 10 percent. Thursday's plunge exacerbated the already troubled movements of the companies, which, combined with concerns about profits, saw widespread sell-offs in technology and growth stocks hit the companies hard.