Musk promise invalid? Tesla continues to fall more than 11%, fears to lose the global market value of the top 20 companies

Tesla $Tesla (TSLA.US)$ shares accelerated their decline, which may make it the longest losing streak since 2018.

As of Tuesday's close, Tesla shares closed down more than 11% at $109, the seventh straight day of declines, WisdomTree App learned. The company's market capitalization has shrunk to less than $350 billion, less than Walmart $Walmart (WMT.US)$ , JPMorgan Chase $JPMorgan (JPM.US)$ and Nvidia $NVIDIA (NVDA.US)$ . The latest wave of selling may cause Tesla to lose its status as a top 20 company in terms of global market capitalization.

Reports last week that Tesla was offering a $7,500 discount to U.S. consumers, followed by news of a planned production cut at its Shanghai plant, have fueled fears of waning demand. For Tesla, whose market capitalization depends on its future growth prospects, these concerns reflect significant risks.

According to Craig Irwin, an analyst at Roth Capital Partners, "Much of the weakness in Tesla's stock this year has been due to indicators showing a decline in global demand, and estimates for Tesla's revenue growth remain impressive, but not as impressive as the $385 billion market cap."

Hopes that Tesla will be the leading electric car company in a future dominated by electric vehicles have driven its stock price to soar eight-fold in 2020, earning it a spot in the S&P 500 and at one point making it the fifth-highest market cap company in that index.