The Elon Musk-owned company’s Tesla shares fell by around 4% during intraday trading on Thursday, marking the third-worst week for the stock thus far in 2024.
With declining sales and significant discounts meant to entice more customers, Tesla’s stock price fell below $150 per share, wiping out all of the gains gained over the previous year. Thursday’s intraday trading saw a nearly 4% decline in shares of the Elon Musk-owned business, marking the third worst week for the stock thus far in 2024.
The Austin, Texas-based company’s shares are down 12.4 percent this week and more than 39 percent this year. Shares of Tesla Inc. last traded for $150 in January 2023. Additionally, Tesla employees have taken a hit as the EV major said that it is cutting 10 percent of its staff globally- around 14,000 jobs.
Vivo V30e to launch in India soon: Design, camera features.
The next day, Tesla announced it would try to re-instate Musk’s $56 billion pay package that was rejected by a Delaware judge in January, who said that the arrangement was dictated by Musk and was the product of negotiations with directors who were not independent of him, according to Associated Press.
Tesla shares hit an all-time intraday high of $415.50 in November of 2021, adjusted for a 3-for-1 stock split that took effect in August 2022. Tesla sales fell sharply last quarter as competition increased worldwide, electric vehicle sales growth slowed, and price cuts failed to draw more buyers.
According to the corporation, it delivered 386,810 cars between January and March, which is about 9% fewer than the 423,000 it sold over the same period the previous year. Wedbush analyst Dan Ives, who has been quite optimistic about Tesla’s stock, described the first quarter sales figures as a “unmitigated disaster.”
In a letter to investors earlier this week, Ives stated, “For Musk, this is a fork in the road time to get Tesla through this turbulent period otherwise dark days could be ahead.” Wall Street is saying that Musk needs to get control of the situation immediately to restore their trust, given the current chaos around demand and margins.
Since last year, Tesla has cut prices as much as $20,000 on some models as it faced increasing competition and slowing demand. The price cuts caused used electric vehicle values to drop and clipped Tesla’s profit margins.
Other automakers also have had to cut electric vehicle production and reduce prices to move EVs off dealership lots. Ford, for instance, cut production of the F-150 Lightning electric pickup and lopped up to $8,100 off the price of the Mustang Mach E electric SUV to sell 2023 models.
Shares of Infosys are down following the Q4 2024 results. Buy or sell?
The growth in US electric car sales in the first quarter of this year was only 3.3%, a significant decrease from the 47% surge that drove record sales and a 7.6% market share in the previous year. According to AP, overall new car sales increased by 5.1%, while the market share of EVs decreased to 7.15%.
Next Monday, Tesla will release its complete first-quarter earnings. Along with the roughly 14,000 job losses, Tesla also announced this week the departure of two senior executives. After eighteen years at Tesla, senior vice president of energy engineering and powertrain Andrew Baglino is leaving. Additionally leaving Tesla is Rohan Patel, senior global director of business development and public policy and an eight-year veteran of the company.
Recent Comments