– Tesla’s shares have dropped more than 30%, losing $230 billion in value
– Slowing sales are affecting the company’s performance
– Analysts are looking to first-quarter results to gauge Tesla’s future success
Tesla’s performance in 2024 has not met expectations, with the electric carmaker’s shares dropping more than 30% and losing roughly $230 billion in value. Analysts predict that slowing sales may continue to impact the company in the future. Earlier in the year, Tesla was celebrated for its triple-digit gains in 2023, but now it holds the title of being the S&P 500’s biggest loser year-to-date. Signs of a slowdown in electric vehicle sales have contributed to the sell-off of Tesla shares, with the company losing its position as the world’s top EV seller to Chinese competitor BYD. This narrative has caused concern amongst investors, as Tesla has historically been considered a high-growth stock favored by both retail and institutional investors.
The next important event for Tesla will be its earnings report for the first quarter of 2024, expected to be released on April 17th. Analysts anticipate a significant slowdown in earnings compared to the previous quarter. How Tesla performs in these results will likely shape its perception on Wall Street for the remainder of the year. Some analysts continue to support Tesla, with a target price of $275, while others have downgraded the stock to $125, citing a lack of growth. Despite the challenges Tesla is facing, the company is still trading at a high valuation compared to other stocks in the market.
Critics have begun to suggest that Elon Musk, Tesla’s CEO, may be part of the problem. Some shareholders believe a new CEO might be necessary to help the company rebound. Musk himself has seen a significant decrease in his personal fortune as a result of Tesla’s declining stock price, giving him a personal stake in turning around the company’s performance on Wall Street.