The capital outflow comes as the company battles internal and external factors that might threaten its market dominance.

In particular, data acquired and calculated by Finbold as of December 26 indicates that in 2022 Q4, Tesla's market capitalisation stood at $388.87 billion, representing a drop of 52.87% or $436.32 billion from the $825.19 billion capitalisation recorded on October 1.

Indeed, Tesla's market cap losses of $436.32 billion in the last quarter of 2022 have surpassed the total capitalisation of the company's top ten competitors. The competing EV manufacturers accounted for a market cap of $280.78 billion in 2022 Q4. Therefore, Tesla lost 55.39% more in 2022 Q4 capitalisation than the cumulative market cap of 10 leading electric vehicle manufacturers.

Notably,  Tesla’s leading EV competitors include BYD, with a market capitalisation of $92.84 billion, followed by Stellantis at $45.14 billion. Great Wall Motors has a market cap of $30.01 billion, with SAIC Motor controlling $24.55 billion in capitalisation.

Other notable competitors include Li Auto ($19.20 billion), NIO ($18.32 billion), Rivian ($16.90 billion), GAC ($13.96 billion), Lucid Motors ($11.25 billion), and XPeng ($8.61 billion).

Triggers for Tesla’s drop in market cap

The research attempted to explain some triggers behind the drop in Tesla's market capitalisation. According to the research report:

"The prospects of Tesla have been weighed down by soaring inflation, aggressive Federal Reserve interest hikes, geopolitical tension, and the prevailing fears of a possible recession. Following the sharp drop, critics of the company have also maintained that the stock is undergoing a bubble burst after skyrocketing in 2020 to new all-time highs. Overall, the macroeconomic factors have likely pushed jittery investors to dump their stocks amid concerns about extended economic decline."

Overall, Tesla's market capitalisation recovery will rely on several factors, with improving economic prospects ranking among the top.